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

question 19

Multiple Choice

Charlie's utility function is U(x_A, x_B) = x_Ax_B. If Charlie's income were $40, the price of apples were $2, and the price of bananas were $3, how many apples would there be in the best bundle that Charlie could afford?

• A) 6
• B) 20
• C) 4
• D) 5
• E) 10

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