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

question 16

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) 6
• C) 8
• D) 2
• E) 1

Analyze the effects of authority, persuasion, and minor opinions on behavior and compliance.

Explain the role of commitment, self-perception, and social norms in compliance and obedience.

Understand the psychological processes involved in resistance to conformity and the factors that enable it.

Assess how socio-economic factors and personal circumstances influence preferences for leadership and decision-making.

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Definitions:

Restatement Second Torts

A legal treatise from the American Law Institute that summarizes the general principles of common law torts in the United States.

Reasonably Safe

A standard requiring that a product, environment, or practice should not pose significant harm to individuals when used or engaged in as intended, taking into account possible preventive measures.

Strictly Liable

Refers to the legal responsibility of a party for damages or loss, regardless of fault or negligence.

Reasonable Person

A reasonable person is a legal standard used to represent a hypothetical person who exercises average care, skill, and judgment in conduct, serving as a comparative standard in negligence cases.