In Problem 7, Harry Mazzola Has the Utility Function U(x₁

question 14

Multiple Choice

In Problem 7, Harry Mazzola has the utility function U(x₁, x₂) = min{x₁ + 2x₂, 2x₁ + x₂}. He has $40 to spend on corn chips and french fries. If the price of corn chips is $4 per unit and the price of french fries is $2 per unit, then Harry will

• A) definitely spend all of his income on corn chips.
• B) definitely spend all of his income on french fries.
• C) consume at least as many corn chips as french fries but might consume both.
• D) consume at least as many french fries as corn chips but might consume both.
• E) consume equal amounts of french fries and corn chips.

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Definitions:

Exchange Relationship

A relationship based on reciprocal actions, where the benefits provided by one party are contingent upon the benefits provided by the other.

Power Shared

Refers to the distribution of decision-making authority among various individuals or groups in an organization, allowing for collaborative governance.

Transactional Leader

A leader who focuses on the role of supervision, organization, and group performance; they are concerned with maintaining the normal flow of operations.

Leader Punishment Behaviour

Actions taken by leaders to penalize or discipline members of an organization for substandard performance or undesirable behavior.