Suppose for Some Utility Function That MU_x = 5y and MU_y

question 59

Multiple Choice

Suppose for some utility function that MU_x = 5y and MU_y = 7x

• A) The assumption that more is better is satisfied for both goods.
• B) This utility function will violate the assumption that preferences are complete.
• C) The indifference curves for this utility function will be straight lines with a slope of -1.
• D) The indifference curves will have a diminishing marginal rate of substitution.

Recognize the contributions of key psychologists to the study of observable behaviors.

Explain the concept of learning as a change in behavior or knowledge due to experience.

Understand the process of extinction in classical conditioning and its implications.

Grasp the significance of observational learning and modeling in the acquisition of new behaviors.

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Definitions:

Variable Cost Method

A pricing strategy in which the price is based on the variable costs of producing a good or service, not including fixed costs.

Cost-Plus Approach

A pricing strategy where a fixed percentage or fixed amount is added to the cost of producing a product to determine its sale price.

Total Cost Method

An accounting approach that sums up all costs associated with the production and sale of goods or services to determine total expense.

Cost-Plus Approach

A pricing strategy where a fixed percentage is added to the total cost of producing a product or service to determine its selling price.