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 42 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?

The average adult has about 21 square feet of skin.

Did you know?

Oxytocin is recommended only for pregnancies that have a medical reason for inducing labor (such as eclampsia) and is not recommended for elective procedures or for making the birthing process more convenient.

Did you know?

Famous people who died from poisoning or drug overdose include, Adolf Hitler, Socrates, Juan Ponce de Leon, Marilyn Monroe, Judy Garland, and John Belushi.

Did you know?

Thyroid conditions cause a higher risk of fibromyalgia and chronic fatigue syndrome.

Did you know?

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

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
Closed urinary drainage system. Urine being measured after it leaves patient’s body via catheter. Closed urinary drainage system. Urine being measured after it leaves patient’s body via catheter.
The declining age of menarche over the past 150 years has been measured in many European countries, The declining age of menarche over the past 150 years has been measured in many European countries,
A utility knife uses replaceable blades and can cut carpet and other materials. A utility knife uses replaceable blades and can cut carpet and other materials.
After all valves have been properly measured and adjusted as necessary, start the reassembly process ... After all valves have been properly measured and adjusted as necessary, start the reassembly process ...
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