As you sit at your desk on your first day back after a rejuvenating vacation to the Caribbean, you bring your mind back to your work as the head of a beverage bottling plant. You have a lot of work to catch up on, and need to prioritize what is most important to address today. Because recent environmental changes have led to new competitors entering your industry you analyze the new environment and identify new strategies and goals to present to your boss. Which of the following basic management functions did you just engage in? a. Leading
b. Planning
c. Organizing
d. Controlling

3. saving two consumers, larry and jeff, have utility functions defined over the two periods of their lives: middle age (period zero) and retirement (period 1). they have the same income in period 0 of m dollars and they will not earn income in period 1. the interest rate they face is r. larry’s and jeff’s utility functions are as follow. = 0.5 + 0.5 and = 0.5 + 0.5 for each person is between zero and one and represents each consumer’s temporal discount econ 340: intermediate microeconomics. ben van kammen: purdue university. rate. a. write the budget constraint that applies to both jeff and larry in terms of consumption in each period and ), interest rate, and m. b. what is larry’s and what is jeff’s marginal rate of intertemporal substitution? c. what is the slope of the budget constraint? d. write each consumer’s condition for lifetime utility maximization. e. re-arrange the conditions from part (d) to solve for the ratio, . f. if > which consumer will save more of his middle age income? g. if > 1 1+ , in which period will larry consume more: = 0 or = 1?