Suppose That Morris Has the Utility Function U(b, W)= 5b

question 4

Multiple Choice

suppose that Morris has the utility function U(b, w) = 5b + 15w and Philip has the utility function U(b, w) = bw.If we draw an Edgeworth box with books on the horizontal axis and wine on the vertical axis and if we measure Morris's consumptions from the lower left corner of the box, then the contract curve contains

• A)a straight line with slope 1/3 passing through the lower left corner of the box.
• B)a straight line with slope 1/3 passing through the upper right corner of the box.
• C)a straight line running from the upper right corner of the box to the lower left.
• D)a curve that gets steeper as you move from left to right.
• E)a curve that gets flatter as you move from left to right.

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Definitions:

Customer Measures

Metrics or indicators used to evaluate the satisfaction, loyalty, retention, and acquisition of customers within a business.

Internal Business Process Measures

Metrics used to evaluate and improve the efficiency and effectiveness of a company's internal operations.

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are metrics used to evaluate the effectiveness of strategies aimed at creating long-term value through employee development and organizational improvement.

Balanced Scorecard

A strategic planning and management system used to align business activities with the vision and strategy of the organization by monitoring performance against strategic goals.