Ollie Has a Utility Function U(x, Y)= (X + 2)(y

question 51

Multiple Choice

Ollie has a utility function U(x, y) = (x + 2) (y + 3) .The price of x is $1 and the price of y is $1.When he maximizes his utility subject to his budget constraint, he consumes positive amounts of both goods.Ollie consumes

• A)exactly as many units of x as of y.
• B)1 more unit of x than he consumes of y.
• C)1 more unit of y than he consumes of x.
• D)2 more units of x than he consumes of y.
• E)None of the above.

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Definitions:

Finishing Department

A section within a manufacturing operation where products undergo final processing, treatments, or coatings before being ready for sale.

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead costs to products or job orders, based on a selected activity base, before the actual costs are known.

Machine-Hours

A measure of the amount of time a machine is operated, often used in costing and budgeting processes.

Forming Department

A production department specialized in shaping and assembling parts or materials into finished goods.