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:

Barriers To Entry

Factors that prevent or hinder companies from entering a particular market or industry.

Barriers To Exit

Factors that make it difficult or costly for a company to leave a market or industry.

Competitive Industry

An industry characterized by many firms competing with each other by offering similar products or services, typically resulting in benefits for consumers through lower prices and higher quality.

Economic Profits

Economic profits represent the surplus revenue after all costs, including opportunity costs, have been deducted from total revenues, reflecting the real profitability of a venture.