Elmer's Utility Function Is U(x, Y)=min{x, Y²}

question 4

Multiple Choice

Elmer's utility function is U(x, y) =min{x, y²}.If the price of x is $25 and the price of y is $15 and if Elmer chooses to consume 7 units of y, what must his income be?

• A)$2,660
• B)$280
• C)$1,430
• D)$1,330
• E)There is not enough information to determine his income.

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Definitions:

Broad Bands

Refers to wide salary ranges within an organization, allowing for significant variation in pay linked to job performance or market rates.

Job Structure

The organized framework of a job's relative position within an organization, based on responsibilities, complexity, and skills required.

Promoting Employees

The act of elevating an employee's position within the company, usually involving increased responsibilities and pay.

Skill-Based Pay System

A compensation strategy where employees' pay rates are determined by their skills, knowledge, and certifications rather than their job titles or positions.