On a Certain Island There Are Only Two Goods, Wheat

question 10

Multiple Choice

On a certain island there are only two goods, wheat and milk.The only scarce resource is land.There are 1,000 acres of land.An acre of land will produce either 8 units of milk or 15 units of wheat.Some citizens have lots of land; some have just a little bit.The citizens of the island all have utility functions of the form U(M, W) = MW.At every Pareto optimal allocation,

• A)every consumer's marginal rate of substitution between milk and wheat is -1.
• B)the number of units of milk produced equals the number of units of wheat produced.
• C)total milk production is 4,000 units.
• D)all citizens consume the same commodity bundle.
• E)None of the above is true at every Pareto optimal allocation.

Understand the concept of minimum required rate of return.

Evaluate investment opportunities in terms of residual income and ROI.

Assess the impact of new investments on overall company performance.

Understand the factors influencing divisional performance evaluation.

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Definitions:

Chromosomes

Long strands of DNA wrapped around proteins, found in the nucleus of eukaryotic cells, containing genes that are passed from one generation to the next.

Heterochromatins

Densely packed form of DNA found in chromosomes, which is transcriptionally inactive and often associated with gene repression.

Endospores

Highly resistant, dormant structures formed by some bacteria to survive extreme environmental conditions.

Antibiotic Resistance

The ability of bacteria and other microorganisms to resist the effects of an antibiotic to which they were once sensitive, leading to treatment challenges.