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

question 15

Multiple Choice

Charlie has the utility function U(x_A, x_B) =x_Ax_B.His indifference curve passing through 12 apples and 64 bananas will also pass through the point where he consumes 2 apples and

• A)386 bananas.
• B)48 bananas.
• C)96 bananas.
• D)394 bananas.
• E)384 bananas.

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Definitions:

Production Costs

Expenses incurred in the process of creating a product or service, including raw materials, labor, and overheads.

Substitute Goods

Products or services that can replace each other in use, serving the same purpose, leading consumers to switch based on changes in price, availability, or preferences.

Price Floor

A government-imposed minimum price charged for a commodity, preventing prices from falling below that level to protect producers.

Competitive Market

A market structure characterized by many buyers and sellers, none of whom can influence the market price on their own.