In Problem 1, Charlie Has the Utility Function U(x_A, X_B)

question 16

Multiple Choice

In Problem 1, Charlie has the utility function U(x_A, x_B) = x_Ax_B. His indifference curve passing through 40 apples and 9 bananas will also pass through the point where he consumes 5 apples and

• A) 48 bananas.
• B) 77 bananas.
• C) 80 bananas.
• D) 24 bananas.
• E) 72 bananas.

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Definitions:

Straight Bond Value

The present value of a bond's future interest payments plus the value of its principal, assuming it does not come with any special features like options.