This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: If the utility for two goods x and y can be measured as U = y, then it can be concluded that A) x ... (Read 39 times)

Sufayan.ah

  • Hero Member
  • *****
  • Posts: 512
on: Jul 1, 2018
If the utility for two goods x and y can be measured as U = y, then it can be concluded that
 
  A) x and y are perfect complements.
  B) x is a bad.
  C) the indifference curves on the x,y graph are upward sloping where x is measured on the horizontal axis.
  D) the indifference curves on the x,y graph are horizontal where x is measured on the horizontal axis.

Question 2

Explain how more than one possible state of nature affects contract choices.
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Viet Thy

  • Sr. Member
  • ****
  • Posts: 329
Reply #1 on: Jul 1, 2018
Answer to Question 1

D

Answer to Question 2

The uncertainty of the state of nature introduces the risk of random events. This forces principals and agents to incorporate efficiency of risk bearing into contracts.


Sufayan.ah

  • Hero Member
  • *****
  • Posts: 512
Reply #2 on: Jul 1, 2018
Thank you :)


Viet Thy

  • Sr. Member
  • ****
  • Posts: 329
Reply #3 on: Jul 1, 2018
Happy to help you


« previous next »
 

Did you know?

Bacteria have flourished on the earth for over three billion years. They were the first life forms on the planet.

Did you know?

The term pharmacology is derived from the Greek words pharmakon("claim, medicine, poison, or remedy") and logos ("study").

Did you know?

When blood is exposed to air, it clots. Heparin allows the blood to come in direct contact with air without clotting.

Did you know?

Anesthesia awareness is a potentially disturbing adverse effect wherein patients who have been paralyzed with muscle relaxants may awaken. They may be aware of their surroundings but unable to communicate or move. Neurologic monitoring equipment that helps to more closely check the patient's anesthesia stages is now available to avoid the occurrence of anesthesia awareness.

Did you know?

To maintain good kidney function, you should drink at least 3 quarts of water daily. Water dilutes urine and helps prevent concentrations of salts and minerals that can lead to kidney stone formation. Chronic dehydration is a major contributor to the development of kidney stones.

Pulmonary function test: spirometry. (a) Normal respiratory volumes, as measured during spirometry. Pulmonary function test: spirometry. (a) Normal respiratory volumes, as measured during spirometry.
Marine myths measured Marine myths measured
Edward Bellamy, author of the utopian novel Looking Backward (1888) Bellamy’s socialism worried many Edward Bellamy, author of the utopian novel Looking Backward (1888) Bellamy’s socialism worried many
As China has embraced its version of capitalism, wealth has grown, as has consumption. Luxury goods ... As China has embraced its version of capitalism, wealth has grown, as has consumption. Luxury goods ...
Calculate the velocity of the red rock after collision Angle measured counterclockwise from the ... Calculate the velocity of the red rock after collision Angle measured counterclockwise from the ...
Video: Bacteriophage (Virus) - Mice Experiment

For a complete list of videos, visit our video library