Charlie Has a Utility Function U(x_A, X_B)=x_Ax_B, the Price of Apples

question 6

Multiple Choice

Charlie has a utility function U(x_A, x_B) =x_Ax_B, the price of apples is $1, and the price of bananas is $2.If Charlie's income were $160, how many units of bananas would he consume if he chose the bundle that maximized his utility subject to his budget constraint?

• A)80
• B)40
• C)8
• D)20
• E)120

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Definitions:

Global Marketing

Marketing strategies designed to capitalize on global market opportunities, necessitating an understanding of various cultural, legal, and economic factors.

Channels between Nations

The various means through which countries communicate, trade, and interact with each other, including diplomatic channels, trade agreements, and international organizations.

Distribution Channels

Networks or pathways through which goods and services flow from producers to consumers, including wholesalers, retailers, and direct-sales mechanisms.

Manufactured Product

Products that have been processed or made from raw materials through industrial processes.