Charlie's Utility Function Is U(x_A, x_B) = X_Ax_B

question 41

Multiple Choice

Charlie's utility function is U(x_A, x_B) = x_Ax_B. 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) 12
• C) 8
• D) 9
• E) 5

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Definitions:

Efferent

Referring to nerve fibers that carry signals away from the central nervous system to effectors such as muscles and glands.

Afferent

Referring to nerve fibers or pathways that carry sensory information from the body's periphery towards the central nervous system.

Cerebellum

A brain structure responsible for coordinating voluntary movements, balance, and fine-tuning motor activities.

Rostral

In anatomy, referring to a position toward the front end of the body in quadrupeds or the bottom of the head in humans.