Which of the Following Utility Functions Represent Preferences of a Consumer

question 50

Multiple Choice

Which of the following utility functions represent preferences of a consumer who does not have homothetic preferences?

• A)U(x, y)= xy.
• B)U(x, y)= x + 2y.
• C)U(x, y)= x + y^.5.
• D)U(x, y)= min{x, y}.
• E)More than one of the above.

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Definitions:

Administrative Expenses

Overhead or general expenses related to the administration of a business, including office salaries, utilities, and legal costs.

Planning Budget

A budget prepared for a planned level of activity; it is used for planning and control purposes within an organization.

Administrative Expenses

Expenses that are not directly related to the production of goods or services, including salaries of administrative staff, rent, and utilities.

Activity Variance

The difference between budgeted and actual activity levels, used in managerial accounting to monitor performance and control costs.