Business, 17.02.2020 23:54, TravKeepIt100
George enjoys drinking coffee everyday. The following utility function describes his preferences for daily coffee consumption: u(x) = min{5x,20}where x is the number of coffee drinks he has that day. Assume each drink costs 2. Which statement is incorrect?
(a) His reservation price for the first drink is 5.
(b) His reservation price for the fifth drink is 5.
(c) His willingness to pay for three drinks is 15.
`(d) Consumer surplus is equal to 12
Answers: 2
Other questions on the subject: Business
Business, 22.06.2019 12:50, montgomerykarloxc24x
You own 2,200 shares of deltona hardware. the company has stated that it plans on issuing a dividend of $0.42 a share at the end of this year and then issuing a final liquidating dividend of $2.90 a share at the end of next year. your required rate of return on this security is 16 percent. ignoring taxes, what is the value of one share of this stock to you today?
Answers: 1
Do you know the correct answer?
George enjoys drinking coffee everyday. The following utility function describes his preferences for...
Questions in other subjects:
Arts, 07.07.2019 03:30
Mathematics, 07.07.2019 03:30
Physics, 07.07.2019 03:30
Mathematics, 07.07.2019 03:30
Mathematics, 07.07.2019 03:30
