Ike's Utility Function Is U(x, Y)= 25xy

question 35

Multiple Choice

Ike's utility function is U(x, y) = 25xy.He has 12 units of good x and 8 units of good y.Ben's utility function for the same two goods is U(x, y) =0 4x + 4y.Ben has 9 units of x and 13 units of y.

• A)Ike prefers Ben's bundle to his own bundle, but Ben prefers his own bundle to Ike's.
• B)Ben prefers Ike's bundle to his own, but Ike prefers his own bundle to Ben's.
• C)Each prefers the other's bundle to his own.
• D)Neither prefers the other's bundle to his own.
• E)Since they have different preferences, there is not enough information to determine who envies whom.

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An intangible asset that arises when a business is acquired for more than its fair tangible asset value, often related to the brand, customer base, and reputation.

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