Mutt's Utility Function Is U(m, J)= Max{3m, J} and Jeff's

question 4

Multiple Choice

Mutt's utility function is U(m, j) = max{3m, j} and Jeff's utility function is U(m, j) =2m + j.Mutt is initially endowed with 3 units of milk and 2 units of juice and Jeff is initially endowed with 5 units of milk and 6 units of juice.If we draw an Edgeworth box with milk on the horizontal axis and juice on the vertical axis and if we measure goods for Mutt by the distance from the lower left corner of the box, then the set of Pareto optimal allocations includes the

• A)left edge of the Edgeworth box but no other edges.
• B)bottom edge of the Edgeworth box but no other edges.
• C)left edge and bottom edge of the Edgeworth box.
• D)right edge of the Edgeworth box but no other edges.
• E)right edge and top edge of the Edgeworth box.

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Definitions:

Strategic Sourcing Process

A method used by organizations to evaluate and engage suppliers with the objective of achieving cost savings, improving quality, and obtaining more favorable terms.

Sourcing Strategy

The approach an organization takes to manage procurement processes and supplier relationships to optimize cost, quality, and supply reliability.

Supplier Selection Criteria

The standards or benchmarks that companies use to evaluate and choose among potential suppliers.

TQM

Total Quality Management; a management approach to long-term success through customer satisfaction, focusing on continuous improvement of organizational processes.