Jane's Utility Function Is Represented As: U = F⁰

question 44

Multiple Choice

Jane's utility function is represented as: U = F^0.5 C^0.5,F is quantity of food and C is quantity of clothing.If her budget constraint is represented as: 120 = 2F + C,her optimal bundle of consumption should be

• A)(40F,40C).
• B)(20F,60C).
• C)(50F,50C).
• D)(45F,20C).

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