« previous next »

Author Question: Clifford lives by the motto Eat, drink, and be merry today, for tomorrow doesn't matter. If ... (Read 187 times)

Lobcity

  • Hero Member
  • *****
  • Posts: 524
on: Jul 1, 2018
Clifford lives by the motto Eat, drink, and be merry today, for tomorrow doesn't matter.
 
  If today's consumption is represented by x and tomorrow's consumption is represented by y, then which of the following best represents Clifford's utility function? A) U = x - y
  B) U = x/y
  C) U = x
  D) U = y

Question 2

A major corporation hires high school students on a part-time basis. It offers a reward of 5,000 to any of its high school seniors who graduate college in four years.
 
  What is the present value of that reward to a student who just finished her junior year of high school, assuming a nominal rate of interest of 8?


cloudre37

  • Sr. Member
  • ****
  • Posts: 332
Reply #1 on: Jul 1, 2018
Answer to Question 1

C

Answer to Question 2

5000/(1.08 )5 = 3,675.15


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Only one in 10 cancer deaths is caused by the primary tumor. The vast majority of cancer mortality is caused by cells breaking away from the main tumor and metastasizing to other parts of the body, such as the brain, bones, or liver.

Did you know?

About one in five American adults and teenagers have had a genital herpes infection—and most of them don't know it. People with genital herpes have at least twice the risk of becoming infected with HIV if exposed to it than those people who do not have genital herpes.

Did you know?

Prostaglandins were first isolated from human semen in Sweden in the 1930s. They were so named because the researcher thought that they came from the prostate gland. In fact, prostaglandins exist and are synthesized in almost every cell of the body.

Did you know?

The top five reasons that children stay home from school are as follows: colds, stomach flu (gastroenteritis), ear infection (otitis media), pink eye (conjunctivitis), and sore throat.

Did you know?

Drug abusers experience the following scenario: The pleasure given by their drug (or drugs) of choice is so strong that it is difficult to eradicate even after years of staying away from the substances involved. Certain triggers may cause a drug abuser to relapse. Research shows that long-term drug abuse results in significant changes in brain function that persist long after an individual stops using drugs. It is most important to realize that the same is true of not just illegal substances but alcohol and tobacco as well.

Gray matter and White matter Gray matter and White matter
Time Slows Down Near Matter Time Slows Down Near Matter
Cerebral Gray Matter and Schizophrenia Cerebral Gray Matter and Schizophrenia
The American Diet Doesn’t Stack Up The American Diet Doesn’t Stack Up
A 5.0-m radius playground merry-go-round with a moment of inertia of 2000 kg ∙ m2 is rotating ... A 5.0-m radius playground merry-go-round with a moment of inertia of 2000 kg ∙ m2 is rotating ...
Dominican drink Dominican drink
Video: Structures that affect circulation - arterioles and vasomotor responses and venous return

For a complete list of videos, visit our video library