Charlie's Utility Is U(c, D, H)= 4c + 10d -

question 16

Multiple Choice

Charlie's utility is U(c, d, h) = 4c + 10d - d ² - 4h, where d is the number of hours per day that he spends driving around, h is the number of hours per day spent driving around by other people in his home town, and c is the amount of money he has left to spend on other stuff besides gasoline and auto repairs.Gas and auto repairs cost $.50 per hour of driving.All the people in Charlie's home town have the same tastes.If each citizen believes that his own driving will not affect the amount of driving done by others, they will all drive D₁ hours per day.If they are all drive the same amount, they would all be best off if each drove D₂ hours per day, where

• A)D₁ = 6 and D₂ = 3.
• B)D₁ = 7 and D₂ = 1.
• C)D₁ = D₂ = 4.
• D)D₁ = 4 and D₂ = 2.
• E)D₁ = 4 and D₂ = 0.

---

Definitions:

Co-Opt

To assimilate or win over to a larger or established group, usually by offering some form of beneficial association.

Situations

The set of circumstances or contexts in which events occur, affecting the behavior and decisions of individuals and groups.

Practical Perspectives

Considerations or viewpoints focused on real-world applications, effects, or implications rather than theoretical or abstract concepts.

Subordinate Conflicts

Disagreements or disputes that occur among team members or between employees and management, which can impact organizational effectiveness and morale.