A Manager Who Sets U($20,0000) = 20, U($40,000) = 40

question 43

Multiple Choice

A manager who sets U($20,0000) = 20, U($40,000) = 40, U($60,000) = 70 has a utility function that:

• A) exhibits increasing marginal utility.
• B) is decreasing.
• C) is linear.
• D) exhibits decreasing marginal utility.
• E) is concave.

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Definitions:

Pumps

Mechanical devices used to move fluids (liquids or gases) from one place to another, often by creating a vacuum or pressure difference.

Crop

A crop is a plant or plant product that can be grown and harvested extensively for profit or subsistence.

Diagram

A basic illustration that depicts the look, framework, or function of an object in a diagrammatic form.

Least Efficient

Pertaining to the lowest level of effectiveness or productivity in terms of energy, cost, or time.