Jim's Utility Function Is U(x, Y)= Xy

question 52

Multiple Choice

Jim's utility function is U(x, y) = xy.Jerry's utility function is U(x, y) = 1,000xy = 2,000.Tammy's utility function is U(x, y) = xy(1 - xy) .Oral's utility function is -1/(10 + xy.Billy's utility function is U(x, y) = x/y.Pat's utility function is U(x, y) = -xy.

• A)No two of these people have the same preferences.
• B)They all have the same preferences except for Billy.
• C)Jim, Jerry, and Pat all have the same indifference curves, but Jerry and Oral are the only ones with the same preferences as Jim.
• D)Jim, Tammy, and Oral all have the same preferences.
• E)None of the above.

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Definitions:

High Volume Products

Products that are produced or sold in large quantities, often benefiting from economies of scale.

Departmental Overhead Rates

Costs associated with running a department that are allocated to the products or services it produces, based on a specific rate.

Overhead Costs

Expenses related to the operation of a business that cannot be directly attributed to a specific product or service, such as rent, utilities, and management salaries.

Idle Capacity

Unused or underutilized production capacity within a manufacturing operation, often leading to increased costs without corresponding revenue.