Charlie's Utility Function Is U(A, B)= AB, Where a and B

question 6

Multiple Choice

Charlie's utility function is U(A, B) = AB, where A and B are the numbers of apples and bananas, respectively, that he consumes.If Charlie is consuming 40 apples and 160 bananas, then if we put apples on the horizontal axis and bananas on the vertical axis, the slope of his indifference curve at his current consumption is

• A)-4.
• B)-8.
• C)-41.
• D)-1/4.
• E)-1/8.

---

Definitions:

Continuity Correction

Continuity correction is an adjustment made to discrete data when applying a continuous probability distribution model, improving the approximation.

Null Hypothesis

A default hypothesis that there is no significant difference or effect, often denoted as H0, to be tested against an alternative hypothesis.

Pay Equity

A principle of employee compensation where individuals are paid equally for work of equal value, without discrimination based on gender or other factors.

Simple Random Sample

A subset of a statistical population in which each member has an equal probability of being chosen.