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:

Emotional Processes

The mechanisms through which emotions are experienced, expressed, regulated, and understood.

Affective Forecasting

Predicting one’s emotional reactions to potential future events. These predictions are often inaccurate.

Self-discrepancy Theory

A theory in social psychology that describes how differences between individuals' actual, ideal, and ought selves can impact their emotional states.

Daily Influence

Daily influence refers to the constant and subtle effects our environment, interactions, and decisions have on our lives day-to-day.