Astrid's Utility Function Is U(H_A, C_A) = H_AC_A

question 16

Multiple Choice

Astrid's utility function is U(H_A, C_A) = H_AC_A. Birger's utility function is min{H_B, C_B}. If Astrid’s initial endowment is no cheese and 13 units of herring and if Birger’s initial endowments are 8 units of cheese and no herring, then where p is a competitive equilibrium price of herring and cheese is the numeraire, it must be that demand equals supply in the herring market. This implies that

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Definitions:

Fiedler's Contingency Theory

A leadership theory proposing that effective leadership depends on a match between the leader's style of interacting with subordinates and the degree of control and influence in the situation.

Task Structure

The degree to which job and task roles are defined, organized, and executed within an organization, affecting clarity and efficiency.

Delegating Style

A management approach where authority and tasks are transferred to lower-level employees, promoting responsibility and decision-making at all levels.

Hersey-Blanchard

A situational leadership model proposing that effective leadership is dependent on the task readiness of the followers.