The Exponents of a Cobb-Douglas Utility Function,U = C ^$\alpha$ M ^$\alpha$

question 63

Multiple Choice

The exponents of a Cobb-Douglas utility function,U = C ^$\alpha$ M ^{$\alpha$ -1},represent:

• A)the share of income devoted to that good.
• B)the rate at which a consumer can trade one good for the other.
• C)the quantity of each good that is demanded.
• D)the amount of utility each good provides.

---

Definitions:

Managerial Challenges

The difficulties and obstacles faced by managers in running organizations, including issues related to leadership, decision-making, and resource allocation.

Global Economy

The interconnected and interdependent economic activities and markets that span across the world.

Ethnocentric

is an attitude or policy that prioritizes one's own culture, race, or ethnic group above others, often leading to prejudice or discrimination.