Mike's Utility Function Is U(c, D, H)= 8c + 12d

question 9

Multiple Choice

Mike's utility function is U(c, d, h) = 8c + 12d - d² - 6h, where d is the number of hours per day that he spends driving around, h is the average number of hours per day spent driving around by other citizens of his town, and c is the amount of money he has to spend on other things than gasoline and auto repairs.There are 1,001 identical citizens in Mike's home town.Mike's expenses for gasoline and auto repairs amount to $.50 per hour for the time he spends driving.If Mike believes that his amount of driving won't affect the amount that others drive, how many hours per day will he choose to drive?

• A)4
• B)6
• C)8
• D)2
• E)1

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Definitions:

Toilet Training

The process of teaching a young child to use the toilet for urination and defecation.

Psychosexual Stage

Conceptual phases in Freudian psychology where an individual's personality is developed through childhood in stages centered on different erogenous zones.

Fixation

An obsessive interest or feeling that may interfere with an individual's ability to attend to new information or life experiences.

Excessive Gratification

The overindulgence in activities or substances that provide pleasure, potentially leading to negative consequences or dependency.