Suppose That a Consumer Has the Utility Function U =

question 16

Multiple Choice

Suppose that a consumer has the utility function U = 5A + 7B.If is measured on the horizontal axis

• A) The indifference curves will be L-shaped.
• B) The indifference curves will be horizontal.
• C) The indifference curves will be straight lines with slope -5/7.
• D) The indifference curves will be straight lines with slope -7/5.

Analyze the impact of cost on production decisions, including the expansion or reduction of output.

Grasp the understanding of total, fixed, and variable costs and how they influence business decisions.

Determine the conditions under which it is beneficial to continue operating or shut down in the short run.

Understand how changes in costs (fixed, variable, marginal) impact output decisions.

---

Definitions:

Tight Junction

A tightly sealed point of contact between two cells, preventing the passage of substances between the cells.

Plasma Membranes

A pair of lipid layers that forms a barrier around the cell's cytoplasm, controlling the import and export of cellular materials.

Adhesion Belt

A protein complex located just below the tight junctions in epithelial cells, contributing to the formation of an adhesive junction that holds cells together.

Apocrine

A type of gland that secretes substances (such as sweat) by shedding part of the cell, found in various parts of the body including armpits and groin.