If Charlie's Utility Function Were X⁴_AX_B and If Apples Cost

question 39

Multiple Choice

If Charlie's utility function were X⁴_AX_B and if apples cost 30 cents each and bananas cost 10 cents each, Charlie's budget line would be tangent to one of his indifference curves whenever

• A) 4X_B = 3X_A.
• B) X_B = X_A.
• C) X_A = 4X_B.
• D) X_B = 4X_A.
• E) 30X_A + 10X_B = M.

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Definitions:

Earned Income

Income derived from active participation in a business or trade, including wages, salaries, tips, and other compensation for services rendered.

Future Services

The future work or duties to be performed under the terms of a service contract or agreement.

Extreme Uncertainty

Situations where the variables and risks affecting an outcome cannot be measured or predicted accurately due to insufficient information or understanding.

Cash Collected

This term generally refers to the amount of money a company receives during a specific period, including revenues from sales and other sources.