Astrid's Utility Function Is U(H_A, C_A)= H_AC_A

question 24

Multiple Choice

Astrid's utility function is U(H_A, C_A) = H_AC_A.Birger's utility function is min{H_B, C_B}.If Astrid's initial endowment is no cheese and 3 units of herring and if Birger's initial endowments are 13 units of cheese and no herring, then where p is a competitive equilibrium price of herring and cheese is the numeraire, demand equals supply in the herring market.This implies that

• A)13/3 = p.
• B)3/13 = p.
• C)13/p + 3/2p = 3.
• D)13/(p + 1)+ 1.50 = 3.
• E)min{3, 13} = p.

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Definitions:

Over-Rewarded

A situation where an individual receives more recognition or compensation than what is perceived to be fair or deserved.

Valence

The value individuals place on work outcomes.

Procedural Justice

The degree to which people perceive the implementation of company policies and procedures to be fair.

Company Policies

Guidelines and rules set by organizations to dictate expected behavior and processes within the company.