Charlie Has the Utility Function U(x_A, X_B)=x_Ax_B

question 7

Multiple Choice

Charlie has the utility function U(x_A, x_B) =x_Ax_B.His indifference curve passing through 24 apples and 6 bananas will also pass through the point where he consumes 4 apples and

• A)12 bananas.
• B)40 bananas.
• C)24 bananas.
• D)43 bananas.
• E)36 bananas.

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Definitions:

Maximum Satisfaction

The highest level of satisfaction or utility achieved by a consumer through the consumption of goods and services.

Economic Principles

Fundamental theories and concepts that underpin the study of economics, guiding the analysis of economic behavior.

Value Judgments

Assessments or opinions based on personal values, ethics, or tastes, rather than objective data.

Positive Economic Statement

An objective statement that can be tested or validated and is based on factual information.