Manu Wants to Achieve a Utility Level of 100

question 60

Essay

Manu wants to achieve a utility level of 100. His utility function is U = XY, where MU_X = Y and MU_Y = X. What is the least amount of money (M) that Manu can spend to achieve a utility level of 100? Manu's budget constraint is M = 8X + 2Y.

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Definitions:

Automatic Thoughts

Immediate, involuntary thoughts and beliefs that occur spontaneously in response to a stimulus and can influence emotions and behaviors.

Beck's Approach

A cognitive therapy method developed by Aaron Beck, focusing on identifying and changing negative thought patterns to improve emotional states and behaviors.

Unipolar Depression

A mood disorder characterized by persistent feelings of sadness or a lack of interest in external stimuli, differing from bipolar disorder by the absence of manic episodes.

Interpersonal Psychotherapy (IPT)

A treatment for unipolar depression that is based on the belief that clarifying and changing one’s interpersonal problems will help lead to recovery.