Consider the Utility Function U = Min (5x,7y)

question 54

Multiple Choice

Consider the utility function U = min (5x,7y) .To increase satisfaction the consumer must consume

• A) at least 5 units more of
• B) at least 7 units more of y
• C) more of both x and y
• D) more of either x or y

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Definitions:

Depreciation

The accounting method of allocating the cost of a tangible or physical asset over its useful life.

Residual Value

The projected worth of an asset upon the completion of its lifespan.

Composite Depreciation

A method of depreciation where a single depreciation rate is applied to the aggregate cost of multiple assets with similar characteristics and useful lives.

Heterogeneous Assets

Assets that are dissimilar in nature and cannot be easily substituted by or compared with each other within a market or industry.