Susan's Utility Function Is U(x, Y)= (X + Y)R², Where

question 62

Multiple Choice

Susan's utility function is U(x, y) = (x + y) R², where x and y are the quantities of goods X and Y that she consumes and R is the number of hours of leisure that she has per day.Good X costs 4 dollars per unit and good Y costs 2 dollars per unit.Her wage rate is 8 dollars per hour and she has 15 hours per day to allocate between labor and leisure.She will

• A)consume equal amounts of goods X and Y.
• B)consume 10 units of good X.
• C)consume 20 units of good Y.
• D)work 10 hours a day.
• E)consume twice as much of good X as of good Y.

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Definitions:

Sole Seller

A market condition where only one supplier provides a particular good or service, also known as a monopoly.

Marginal Cost

The investment needed to produce an extra unit of a product or service.

Marginal Revenue

The extra revenue a company earns by selling an additional unit of a product or service.

Barrier to Entry

Factors that prevent or hinder companies from entering a particular market, which might include high startup costs, strict regulations, or strong competition.