Mike's Utility Function Is U(c, D, H) = 8c

question 39

Multiple Choice

Mike's utility function is U(c, d, h) = 8c + 12d - d² - 6h, where d is the number of hours per day that he spends driving around, h is the average number of hours per day spent driving around by other citizens of his town, and c is the amount of money he has to spend on other things than gasoline and auto repairs. There are 1,001 identical citizens in Mike's home town. Mike's expenses for gasoline and auto repairs amount to $.50 per hour for the time he spends driving. If Mike believes that his amount of driving won't affect the amount that others drive, how many hours per day will he choose to drive?

• A) 4
• B) 8
• C) 2
• D) 6
• E) 1

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Definitions:

Braided Stream

A network of river channels separated by small, often temporary, islands called braid bars, typically found in areas with high sediment supply.

Sinuosity

The measure of how much a river or stream meanders or the degree of its winding path.

Point Bar

A sedimentary formation consisting of alluvium, built up along the inner curve of rivers and streams beneath the slip-off slope.

Floodplain

An area of relatively smooth land adjacent to a stream channel that is intermittently flooded when the stream overflows its banks.