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

question 16

Multiple Choice

In Problem 1, Charlie has a utility function U(x_A, x_B) = x_Ax_B, the price of apples is $1, and the price of bananas is $2. If Charlie's income were $160, how many units of bananas would he consume if he chose the bundle that maximized his utility subject to his budget constraint?

• A) 8
• B) 40
• C) 20
• D) 80
• E) 120

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Definitions:

Delegation

The process of assigning responsibility and authority to others to carry out specific tasks.

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An approach that integrates ideas, methods, and theories from multiple disciplines to advance understanding or solve problems beyond the scope of any single discipline.

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The application of social science theories and methods to real-world problems and situations.

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