Ambrose Has the Utility Function U(x₁, X₂)= 4x^1/2₁ + X₂

question 19

Multiple Choice

Ambrose has the utility function U(x₁, x₂) = 4x^1/2₁ + x₂.If Ambrose were initially consuming 9 units of nuts (good 1) and 21 units of berries (good 2) , then what is the largest number of berries that he would be willing to give up in return for an additional 16 units of nuts?

• A)26
• B)5
• C)8
• D)4
• E)2

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Definitions:

Planning

The process of making detailed strategies or arrangements for achieving specific goals or tasks in the future.

Instrumental Leadership

A leadership style focused on achieving goals through clear directives, task structuring, and performance feedback.

Intrinsically Satisfying

An activity or outcome that is rewarding or fulfilling in itself, not because of any external reward it might bring.

Strategic Connection

A purposeful relationship or partnership formed to achieve mutual benefits and align with strategic goals.