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

question 47

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) 8
• C) 12
• D) 9
• E) 5

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Definitions:

Specific Identification Method

An inventory valuation method in which costs are assigned to individual items, used in situations where each item is distinguishable or significantly different from others.

Costing Inventories

The process of determining the value of inventory, including the costs associated with acquiring or producing the goods.

Physical Flow

The movement and tracking of physical goods and materials through the production process or supply chain.

Inventory Costing Method

An approach used to value inventory and determine the cost of goods sold, including methods like FIFO, LIFO, and weighted average.