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

question 12

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 20 units of herring and if Birger's initial endowments are 4 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)4/(p + 1)+ 10 = 20.
• B)20/4 = p.
• C)4/20 = p.
• D)4/p + 20/2p = 20.
• E)min{20, 4} = p.

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Definitions:

Tangible E&E Assets

Tangible Exploration & Evaluation Assets; physical assets used in the exploration and evaluation of mineral resources.

Fair Value

The estimated market price at which an asset or liability could be bought or sold in a current transaction between willing parties.

AASB 6/IFRS 6

An accounting standard which applies to the exploration and evaluation expenditures incurred by an entity in its exploration for and evaluation of mineral resources.