Consider the Utility Function $u \left( x _ { 1 } , x _ { 2 } \right) = x _ { 1 } ^ { \alpha } x _ { 2 } ^ { \beta }$

question 16

Essay

Consider the utility function $u \left( x _ { 1 } , x _ { 2 } \right) = x _ { 1 } ^ { \alpha } x _ { 2 } ^ { \beta }$ .Which of the following are true statements about the indifference maps represented by this function.
a.
MRS=-1 along the 45 degree line if and only if
$\alpha = \beta$ .
b.
MRS=-1 along a ray steeper than the 45 degree line if and only if
$\alpha > \beta$ .
c.
MRS=-1 along a ray shallower than the 45 degree line if and only if
$\alpha < \beta$ .
d.
All of the above.
e.
None of the above.

Recognize the factors influencing bystander intervention in emergencies.

Understand the influence of social and physical surroundings on helping behaviors and attraction.

Learn about pluralistic ignorance and its effects in social situations.

Acquire knowledge about social facilitation and its effects on performance.

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Definitions:

Structure Versus Behavior

A distinction in competition policy and economic regulation focusing on the organization and arrangements of firms (structure) versus their actual conduct (behavior) in the market.

Rule Of Reason

The principle that not all actions deemed as restrictive of trade are illegal, depending on whether they are unreasonable restraints.

Vertical Merger

A business combination of companies that operate along the same supply chain but at different stages of production.

Horizontal Merger

The combination of two or more firms competing in the same industry and at the same stage of production, aimed at increasing market share.