For each of the following utility functions, explain whether the
preferences that they represent are strictly convex. Use
indifference curve diagrams to help explain your answers.
1. Preferences represented by u (x1, x2) = x1 + x2.
2. Preferences, represented by u (x1, x2) = min {x1, x2}.
3. Dictator and Ultimatum Games with Fehr-Schmidt Preferences.
Now let the two utility functions be given by,
UA = xA − .6 max(xB −
xA, 0) − βA max(xA −
xB, 0),
UB = xB − αB max(xA
− xB, 0).
(a) Suppose that the two agents play a dictator game in which
player A is given an endowment of 100 and may transfer any amount s
∈ [0, 100] to player B. The material payoffs are then given by...
Following are the most important file management functions
available in C. Use any 6 of them in your program and show the
output.
Function
purpose
fopen ()
Creating a file or opening an existing file
fclose ()
Closing a file
fprintf ()
Writing a block of data to a file
fscanf ()
Reading a block data from a file
getc ()
Reads a single character from a file
putc ()
Writes a single character to a file
getw ()
Reads...
5 What work environment and life preferences are most
important to you? In what ways might these preferences affect your
career decision-making?6 Are you open to proactive and ongoing self-promotion?
If So, how will you develop your network? If not, what issues must
you overcome in order to be open to self-promotion?
Consider a consumer's preferences over consuming two goods that
are represented by the following utility function:
U(x1,x2)= x1^a
x2^1-α
0 < α < 1
x1,x2 ≥ 0
(a) Do her preferences satisfy monotonicity? (4 mark)
(b) Do her preferences exhibit diminishing marginal utility?
(c) Are her preferences convex? In other words, do her
preferences exhibit diminishing marginal rate of substitution?
(Hint: Find MRS and its rate of changes with respect to the good on
the horizontal axis.)
(d) Use a...
1. One of the most
important measures of the quality of service provided by any firm
is the speed with which it responds to customer complaints.
Comcast, a U.S. global telecommunications conglomerate, wants to
greatly improve its customer satisfaction. Comcast states the
desired mean call time involving customer complaints is 12 minutes
(including wait time). Assume the standard deviation is known to be
0.15 minutes. A sample of 70 customer calls yields a mean time of
12.14 minutes. This sample...
Which of the following types of preferences and utility do NOT
necessarily generate straight-line Engel curves?
Perfect substitutes
Leontiev
Cobb-Douglas
Quasi-Linear
A and C
For the two preferences described below, please answer the
following questions.
(i) Write down a utility function that is consistent with the
description of the preference.
(ii) Draw indifference curve maps for the individual. Label both
axis. Indicate marginal rate of substitution on your graph and
whether it is diminishing.
(iii) Obtain the demand function for both good x and y.
(iv) Describe how an increase in income would affect John and
Mary’s consumption bundles. John and Mary’s preferences are...
Consider the following: Suppose that two neighbours with
identical nonhomothetic preferences derive utility from the number
of flower gardens in their shared community lot, x, and on the
number of tomatoes that they eat from their own vegetable gardens,
y. The specific form of the utility function is given by:
Ui(x,yi )=x+lny
The price of one flower garden is $1 and the price of a
vegetable garden is $2. Each neighbour has a budget of $12.
a) If each neighbour...