Kitty's Utility Function for BMWs and Money Is Given by 16,000x

question 11

Multiple Choice

Kitty's utility function for BMWs and money is given by 16,000x + y, where x is the number of BMWs she has and y is the amount of money she has. Her income is $23,000. Her reservation price for one BMW is

• A) $16,000 - y.
• B) $16,000 - p.
• C) $16,000.
• D) $7,000.
• E) $39,000.

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Definitions:

Credit Memo

A document issued by a seller to a buyer, reducing the amount owed, often due to a return or overcharge.

Perpetual Inventory System

In accounting for inventory, this method promptly captures the transaction of a sale or purchase using advanced computerized point-of-sale systems and enterprise asset management software.

Cost of Goods Sold

The total cost of manufacturing or acquiring the inventory that was sold during a specific period.

Credit Card Fees

Charges imposed by credit card companies for the processing of transactions, often including a percentage of the transaction amount and a flat fee.