Suppose That Morris Has the Utility Function U(b, W)= 7b

question 23

Multiple Choice

suppose that Morris has the utility function U(b, w) = 7b + 21w 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 curve that gets steeper as you move from left to right.
• D)a straight line running from the upper right corner of the box to the lower left.
• E)a curve that gets flatter as you move from left to right.

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Definitions:

Collective Representation

A process by which a group acts together to promote its members' interests, often in negotiations with employers.

Management Efforts

The actions or initiatives undertaken by management to achieve organizational objectives, improve performance, or solve problems.

Stakeholder Theory

A theory of organizational management and business ethics that addresses morals and values in managing an organization, emphasizing the importance of all stakeholders.

NLRA

The National Labor Relations Act of 1935, a foundational statute in United States labor law which protects the rights of employees to organize, bargain collectively, and engage in other union activities.