Solved

Charlie's Utility Function Is U(xA, XB) = XAxB

Question 41

Multiple Choice

Charlie's utility function is U(xA, xB) = xAxB. If Charlie's income is $40, the price of apples is $4, and the price of bananas is $2, how many apples are there in the best bundle that Charlie can afford?


A) 10
B) 8
C) 12
D) 9
E) 5

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents