Phil Rupp, from Problem 4, Has a Sister Ethel Who

question 13

Multiple Choice

Phil Rupp, from Problem 4, has a sister Ethel who has the utility function U(x, y) = min{ 5x + y, 6y}. Where x is measured on the horizontal axis and y on the vertical axis, her indifference curves consist of a

• A) positively sloped line segment and a negatively sloped line segment that meet along the line x = y.
• B) vertical line segment and a horizontal line segment that meet in a kink along the line y = 5x.
• C) vertical line segment and a horizontal line segment that meet in a kink along the line x = 5y.
• D) horizontal line segment and a negatively sloped line segment that meet in a kink along the line x = y.
• E) horizontal line segment and a positively sloped line segment that meet in a kink along the line x = 5y.

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Definitions:

Intangibility

A characteristic of services that implies they cannot be seen, touched, or made tangible in the same manner as physical products.

Inseparability

A characteristic of services indicating that they are often produced and consumed simultaneously and cannot be separated from their provider.

Nonprofit Organizations

Entities that operate for purposes other than making a profit, focusing on social, charitable, cultural, or educational objectives.

American Red Cross

A humanitarian organization that provides emergency assistance, disaster relief, and education inside the United States.