Multiple Choice
Owen and Simon both like playing with balls and cars.Suppose B represents the number of balls,and C represents the number of cars.If Owen's utility function can be given by U(B,C) = 10B + 5C,and Simon's utility function can be given by U(B,C) = 6B + 6C,which of the following trades would be mutually beneficial?
A) Owen gives Simon 3 cars in exchange for 2 balls
B) Owen gives Simon 2 cars in exchange for 3 balls
C) Owen gives Simon 3 balls in exchange for 2 cars
D) Owen gives Simon 2 balls in exchange for 3 cars
Correct Answer:

Verified
Correct Answer:
Verified
Q8: Stewie enjoys watching DVDs and listening to
Q9: Frieda enjoys cooking and baking.Her utility function
Q10: For any given family of indifference curves,a
Q11: A "bad" would be associated with:<br>A) zero
Q12: When the more-is-better principle holds,we assign higher
Q14: Refer to Figure 4.3.Which diagram most likely
Q15: According to Figure 4.1,which of the following
Q16: Compare and contrast cardinal utility and ordinal
Q17: Higher rates of substitution are indicated by
Q18: If the more-is-better principle holds,then indifference curves