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

question 15

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)8
• C)2
• D)6
• E)1

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Definitions:

Laceration

A deep cut or tear in the skin or flesh, which could be caused by accidents with sharp objects and might require medical attention to prevent infection.

Inflammatory Process

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Vascular Response

The series of changes in the size and calibre of blood vessels in reaction to stimuli, affecting blood flow and pressure.

Antidiuretic Hormone

A hormone produced by the brain that regulates the balance of water in the body by reducing the amount of water excreted in urine.