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

question 48

Multiple Choice

Charlie has the utility function U(x_A, x_B) = x_Ax_B.His indifference curve passing through 35 apples and 18 bananas will also pass through the point where he consumes 5 apples and

• A)131 bananas.
• B)137 bananas.
• C)21 bananas.
• D)42 bananas.
• E)126 bananas.

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Definitions:

Demand Schedule

A table or graph displaying the quantity of a good or service that consumers are willing and able to purchase at various price points within a given time frame.

Collude

To agree secretly among competitors to fix prices, bids, or terms of sale in order to manipulate a market.

Gasoline Sellers

Businesses or entities that offer gasoline for sale to consumers, ranging from multinational corporations to local gas stations.

Socially Efficient Quantity

The level of production of a good or service that optimizes social welfare, taking into account both private costs and externalities.