Kenny Kink's Utility Function Is U(c₁, C₂)=min{c₁, C₂}, Where C₁

question 15

Multiple Choice

Kenny Kink's utility function is u(c₁, c₂) =min{c₁, c₂}, where c₁ is his consumption in period 1 and c₂ is his consumption in period 2.He earns $200 in period 1 and $220 in period 2.Kenny can borrow and lend at an interest rate of 10%, and there is no inflation.The number of dollars that Kenny spends on consumption in the first period must be

• A)more than 200 but less than 220.
• B)exactly 200.
• C)more than 220.
• D)exactly 180.
• E)more than 180 but less than 200.

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Definitions:

Push Processes

Supply chain processes that operate on forecast demand, pushing products through the supply chain to the end user.

Customer Demand

The quantity of products or services that consumers are willing and able to purchase at various prices during a specified period.

Available Capacity

The maximum output or the total amount of work that a facility, employee, or machine can produce or accommodate in a specific period.

Inventory

The goods and materials that a business holds for the purpose of resale or production.