Vhee Ayar lives alone in a computer lab where it spends 10 hours per day producing spurious orrside calls (denoted xf) and awarding incomprehensible penalties (denoted xp). Vhee Ayar can conjure 8 offside calls per hour, and it can summon 6 penalties per hour. The utility that Vhee Ayar derives from offside calls and penalties is captured by the utility function U(xf, xp) = 3xf x05. How many offside calls and penalty kicks will Vhee Ayar choose to produce/consume each day?

Vhee Ayar lives alone in a computer lab where it spends 10 hours per day producing spurious orrside calls (denoted xf) and awarding incomprehensible penalties (denoted xp). Vhee Ayar can conjure 8 offside calls per hour, and it can summon 6 penalties per hour. The utility that Vhee Ayar derives from offside calls and penalties is captured by the utility function U(xf, xp) = 3xf x05. How many offside calls and penalty kicks will Vhee Ayar choose to produce/consume each day?

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter20: Consumer Choice: Maximizing Utility And Behavioral Economics

Section: Chapter Questions

Problem 8QP

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Vhee Ayar lives alone in a computer lab where it spends 10 hours per day producing spurious orside calls (denoted xf) and awarding incomprehensible penalties (denoted xp). Vhee Ayar can conjure 8 offside calls per hour, and it can summon 6 penalties per hour. The utility that Vhee Ayar derives from offside calls and penalties is captured by the utility function U(Xf, xp) = 3xf x05. How many offside calls and penalty kicks will Vhee Ayar choose to produce/consume each day?
Assume you have your car broken down just before the weekend. You value your weekend trip as much as v and if you have to stay home you get the zero utility. There are two dealerships in your town. At the beginning of the day they simultaneously choose a price for repair. Dealers know that when you come to one of them and observe the price, you can always call to another dealer to make an inquiry about his price. The call is costless. The other dealer, however, can be occupied for this day. Assume, this happens with probability a which is a common knowledge (but the dealers do not know whether the other dealer is occupied or not). Assume zero repair cost for the dealer and find a symmetric equilibrium of the game.
Your own a chocolate producing company which can advertise on both television (T) and internet(I). The effect of TV and online commercials on sales is again given byS(T,I) = 500 + 48T−6T2+ 112I−6I2+ 4TI. You have a budget of $25 that you can spend on T and I. The price of aTV commercial is $12per unit and the price of an online commercial is also $12 per unit. 1. Determine the optimal level of TV commercials T and online commercials I if you have to spend all of your budget. You should provide two methods to solve this, by direct substitution and by setting up the Lagrangian. Is the Lagrange multiplier positive or negative? Give an intuitive interpretation of why this is the case? 2. Now determine the optimal level of TV commercials T and online commercials I if you DO NOT have to spend all of your budget. Do you obtain the same answer as subquestion 5.1? What is the Lagrange multiplier equal to in this case? Discuss.
You have decided to start a snow-plowing business whereby you will offer to plow the driveways of your neighbours' homes after heavy snowfalls. You are well known by everybody in your neighbourhood, you have a plow for the front of your truck, and you think that your neighbours would rather hire you than someone they do not know. From your research, you know that homeowners are charged an average of $40 to plow their driveways after a heavy snowfall. Interestingly, a few years ago, your research tells you that homeowners were charged an average of $25 to plow their driveways after a heavy snowfall. The average price has gone up, which excites you. Apply your learning about supply and demand to this fact pattern to analyze possible reasons for the increase in price. Consider the five factors that may impact demand and the 6 factors that may impact supply. What questions do you want answered before committing to this business?
Joe and Martin, two roommates, have access to music in digital and analog formats. Each are initially endowed with 8 GB of high-resolution digital music and 4 vinyl LP's (analog) per month (there are a total of 16 GB's of music in digital and 8LP's in this case). Joe's preferences for music in digital and analog formats are represented by the utility function u, (D, A) = 2D + 2A, where D is the amount of digital music in GB's and A is the numberofLP's. Martin's utility function is um(D,A)=D+4A. 1. Draw an Edgeworth box to show the initial endowments and the indifference curves (going through the initial endowments) for Joe and Martin. What are their utility levels from the initial endowments? 2. Calculate the marginal rates of substitution for Joe and Martin. Provide an economic interpretation. 3. Do the initial endowments represent a Pareto efficient allocation? Discuss. 4. If Joe convinces Martin to exchange music at terms which would leave Martin at his initial utility level (i.e.,…
Joe and Martin, two roommates, have access to music in digital and analog formats. Each are initially endowed with 8 GB of high-resolution digital music and 4 vinyl LP's (analog) per month (there are a total of 16 GB's of music in digital and 8LP's in this case). Joe's preferences for music in digital and analog formats are represented by the utility function u,(D, A) = 2D + 2A, where D is the amount of digital music in GB's and A is the numberofLP's. Mạartin's utility function is um(D,A)=D+4A. 1. If Joe convinces Martin to exchange music at terms which would leave Martin at his initial utility level (i.e., without making him worse-off), what is the set of (D, A) that would make Joe better off. Show this on the Edgeworth box that you drew in part (a). What is the final allocation of music under these terms? What is the exchange rate (LP's per GB of digital music)? 2. On the Edgeworth box, show the set of exchange possibilities for Joe and Martin which would make at least one of them…
Suppose Jimi has reference dependent preferences over guitars and money as in Tversky and Kahneman (1991). His utility functions are given below. Gains Gains 400 2 -2 -2 Guitars 24 Losses Losses -600 -2 What is the least amount of money Jimi is willing to accept to sell one of his guitars? (just enter a dollar amount, i.e., "1000", not "$1000"
Anon is a graduate student at Lock Haven University studying human behavior. Three subjects, Felicity, Terrance, and Lola, listed their utility for pineapple and watermelon. Anon believes he will be able to tell which subject likes pineapple the most by referring to the levels of utility each one reported. His adviser, Dr. Util, tells him his research is flawed. Explain why Dr. Util feels this way.
You are considering going to a football game. However, the roads are cover in ice due to bad weather. Your ticket was a gift. You derive a value of z from attending the game, and a cost of D for driving on the icy roads. Your utility function is given by: ug(Z) + ui(D) = In(Z - 3) - In(2 - D). In your ultimate wisdom, you calculate that the cost of driving on the icy roads is 1 unit (So, D=1). What is the minimum value you must obtain from attending the game, so that you decide to go? Solution sent me fast ..
Juanita is deciding whether to buy a suit that she wants, as well as where to buy it. Three stores carry the same suit, but it is more convenient for Juanita to get to some stores than others. For example, she can go to her local store, located 15 minutes away from where she works, and pay a marked-up price of $104 for the suit: Store Travel Time Each Way Price of a Suit (Minutes) (Dollars per suit) Local Department Store 15 104 Across Town 30 87 Neighboring City 60 80 Juanita makes $36 an hour at work. She has to take time off work to purchase her suit, so each hour away from work costs her $36 in lost income. Assume that returning to work takes Juanita the same amount of time as getting to a store and that it takes her 30 minutes to shop. As you answer the following questions, ignore the cost of gasoline and depreciation of her car when traveling. Complete the following table by computing the opportunity cost of Juanita's time and the total…
Question 10 Which of the following startements about network externalities is CORRECT? Air pollution is an example of a network externality. For a good with network externalities, the number of people who are willing to buy a unit of the good is uniquely determined by the price. Network externalities are always positive. The manufacturer of a new good with network externalities might give away a free version of the good. For a good with network externalities, one person's valuation of the good is always increasing in the number of other people using the good.
14.3 (0) Quasimodo consumes earplugs and other things. His utility function for earplugs x and money to spend on other goods y is given by u(x, y) = 100x x² +y. 2