In Problem 7, Lolita's Utility Function Is U(x, Y)

question 2

Multiple Choice

In Problem 7, Lolita's utility function is U(x, y) , where x is her consumption of cow feed and y is her consumption of hay. If the price of cow feed is $.60, the price of hay is $1, and her income is $4 and if Lolita chooses the combination of hay and cow feed that she likes best from among those combinations she can afford, her utility will be

• A) 4.08.
• B) 3.40.
• C) 0.08.
• D) 6.08.
• E) 2.08.

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Definitions:

Aristocracy

A class of people holding exceptional rank and privileges, especially the hereditary nobility.

Governing Noble Elite

A social class of people with high status and power, often involved in the administration and ruling of a country or area.

Legitimacy

The recognition and acceptance of an authority, institution, or government as right and proper, often derived from law, custom, or consent.

Political Organization

Refers to the way a society creates and applies structures and systems of governance, including the distribution of power and the management of public affairs.