Betsy's Utility Function for BMWs and Money Is Given by 8,000x

question 6

Multiple Choice

Betsy's utility function for BMWs and money is given by 8,000x + y, where x is the number of BMWs she has and y is the amount of money she has.Her income is $22,000.Her reservation price for one BMW is

• A)$14,000.
• B)$8,000 - y.
• C)$8,000 - p.
• D)$8,000.
• E)$30,000.

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Definitions:

Short-term Debt

Debt obligations, typically due within one year, that are used for financing immediate operational needs of a business.

Working Capital Financing

This refers to short-term loans or credit facilities used by a company to finance its daily operations and manage its current assets and liabilities.

Accounts Payable

Short-term liabilities of a company, representing amounts owed to vendors or suppliers for goods and services received but not yet paid for.

CCC

Refers to the Cash Conversion Cycle, a metric that gauges how efficiently a company manages its inventory, receivables, and payables to generate cash.