Author Question: Demand functions are homogeneous of degree zero in all prices and income.. This means a. a ... (Read 44 times)

burchfield96 · **on:** Jul 1, 2018

Demand functions are homogeneous of degree zero in all prices and income.. This means
a. a proportional increase in all prices and income will leave quantities demanded unchanged.
b. a doubling of all prices will not alter consumption decisions.
c. prices directly enter individuals' utility functions.
d. an increase in income will cause all quantities demanded to increase proportionately.

Question 2

The features of the U-Form of firm organization are
a. workers can easily develop a high degree of functional expertise
b. it is difficult for employees to share information across positions within a division
c. employee evaluation is hampered by managers having different skill sets than workers
d. coordination across divisions is simple and does not take much management time