Lucy's Utility Function Is 2X_L + G and Melvin's Utility

question 7

Multiple Choice

Lucy's utility function is 2X_L + G and Melvin's utility function is X_MG, where G is their expenditures on the public goods they share in their apartment and where X_L and X_M are their respective private consumption expenditures. The total amount they have to spend on private goods and public goods is $33,000. They agree on a Pareto optimal pattern of expenditures in which the amount that is spent on Lucy's private consumption is $9,000. How much do they spent on public goods?

• A) $4,000
• B) $16,000
• C) $8,550
• D) $8,000
• E) There is not enough information here to be able to determine the answer.

Analyze how organizational policies and structures, like email and status symbols, influence status barriers and group dynamics.

Describe the importance and mechanisms of reward allocation norms in organizational and group settings.

Understand the concept of behavioral economics, including self-interest and altruism.

Describe the nature and outcomes of the dictator and ultimatum games in illustrating human behavior.

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Definitions:

Concise Writing

The art of expressing ideas using the fewest possible words without sacrificing clarity.

Cultural Misunderstandings

Misinterpretations or conflicts that arise from the differences in norms, values, or communication styles among various cultures.

Topic Sentence

The opening sentence of a paragraph that summarizes its main idea or point.

Direct Strategy

An approach in communication or planning where the main point or objective is stated clearly and upfront, often used for clarity and efficiency.