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 52 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?

More than 20 million Americans cite use of marijuana within the past 30 days, according to the National Survey on Drug Use and Health (NSDUH). More than 8 million admit to using it almost every day.

Did you know?

Blastomycosis is often misdiagnosed, resulting in tragic outcomes. It is caused by a fungus living in moist soil, in wooded areas of the United States and Canada. If inhaled, the fungus can cause mild breathing problems that may worsen and cause serious illness and even death.

Did you know?

According to the CDC, approximately 31.7% of the U.S. population has high low-density lipoprotein (LDL) or "bad cholesterol" levels.

Did you know?

Adult head lice are gray, about ? inch long, and often have a tiny dot on their backs. A female can lay between 50 and 150 eggs within the several weeks that she is alive. They feed on human blood.

Did you know?

All patients with hyperparathyroidism will develop osteoporosis. The parathyroid glands maintain blood calcium within the normal range. All patients with this disease will continue to lose calcium from their bones every day, and there is no way to prevent the development of osteoporosis as a result.

A simulated-color map of the surface of Venus as measured by synthetic aperture radar on the Magella A simulated-color map of the surface of Venus as measured by synthetic aperture radar on the Magella
Worldly Goods Worldly Goods
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 ...
Particles measured, 1970 - 2008 and Trend in Organic Compound 1990 - 2007 Particles measured, 1970 - 2008 and Trend in Organic Compound 1990 - 2007
Video: Dissociative Disorders (Part 2)

For a complete list of videos, visit our video library