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Assume that Elizabeth's utility function is U(x; y) = xy so that her utility equals the product of the quantities of x and y. She tells her friend Miriam that no matter her income, she always spends an equal amount of it on each good.
(a) Is Elizabeth a utility maximizer if she follows her simple rule of thumb? Prove your answer.
(b) Assuming that Elizabeth is a rational, utility maximizer, derive the demand for good x when her income is $1,000 and the price of good y is held constant at py = 1.
The assignment in management is a two part assignment dealing 1.Theory of function of management. 2. Operations and Controlling.
Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. Due to increase in the preference for light beer drinkers, Chris Prangel wants to introduce light beer version in Mountain Man. An analysis into the la..
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