Jane's utility function is represented as: U = F0.5 C0.5, F is ...

[silviawilliams41]

Jane's utility function is represented as: U = F0.5 C0.5, F is quantity of food and C is quantity of clothing. If her budget constraint is represented as: 120 = 2F + C, her optimal bundle of consumption should be
 
  A) (40F, 40C).
  B) (20F, 60C).
  C) (50F, 50C).
  D) (45F, 20C).

Question 2

A deferred payment scheme is more likely to be accepted by a worker if
 
  A) the firm has a reputation of not firing senior employees to save pension costs.
  B) the worker is very young.
  C) the worker is very old.
  D) None of the above.

[millet]

Answer to Question 1

A

Answer to Question 2

A

[silviawilliams41]

Excellent

[T4T]

TYSM