Xavier and Yvette Are the Only Two Persons on a Desert

question 50

Multiple Choice

Xavier and Yvette are the only two persons on a desert island.There are only two goods, nuts and berries.Xavier's utility function is U(N_x, B_x) = N_xB_x.Yvette's utility function is U(N_y, B_y) =2N_y + B_y.Xavier is endowed with 5 units of berries and 13 units of nuts.Yvette is endowed with 6 units of berries and 8 units of nuts.In a competitive equilibrium for this economy, how many units of berries does Xavier consume?

• A)13.50
• B)18.50
• C)15.50
• D)31
• E)None of the above.

Know the benefits of participatory planning in the organizational context.

Identify the steps involved in the planning process and their significance.

Understand the relationship between planning and controlling within the management functions.

Grasp the essence of planning in setting objectives and determining actions to achieve them.

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Definitions:

Put

A financial contract giving the holder the right, but not the obligation, to sell a specified amount of an underlying asset at a predetermined price within a specified time frame.

Conversion Value

The financial value of converting a convertible security, like a convertible bond, into its underlying equity at the current market price.

Convertible Bond

A convertible bond is a type of bond that can be converted into a predetermined number of shares of the issuing company's stock during certain periods during its life.

Black-Scholes

A mathematical model used to estimate the theoretical price of options and other derivatives, incorporating factors like volatility and time to maturity.