Suppose That Romeo Has the Utility Function U = S

question 6

Multiple Choice

Suppose that Romeo has the utility function U = S ⁵_RS ²_J and Juliet has the utility function U = S ²_RS ⁵_J, where S_R is Romeo's spaghetti consumption and S_J is Juliet's.They have 42 units of spaghetti to divide between them.

• A)Romeo would want to give Juliet some spaghetti if he had more than 21 units of spaghetti.
• B)Romeo would want to give Juliet some spaghetti if he has more than 26 units of spaghetti.
• C)Juliet would want to give Romeo some spaghetti if she has more than 28 units.
• D)Romeo and Juliet would never disagree about how to divide the spaghetti.
• E)Juliet would want to give Romeo some spaghetti if she has more than 30 units of spaghetti.

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Definitions:

Organic Structure

Is a flexible, decentralized organizational structure with less formal procedures, open communication channels, and a focus on adaptability and teamwork.

Decentralized Decision

A management strategy where decision-making powers are distributed among various levels of the organization rather than being concentrated at the top.

Narrow Span

a management structure where a supervisor oversees a small number of subordinates, allowing for close supervision and control.

Organizational Complexity

relates to the various interconnected components within an organization, including its structure, processes, and dynamics that determine its level of intricacy.