Charlie's Utility Function Is U(x_A, X_B)=x_Ax_B

question 22

Multiple Choice

Charlie's utility function is U(x_A, x_B) =x_Ax_B.If Charlie's income were $40, the price of apples were $2, and the price of bananas were $6, how many apples would there be in the best bundle that Charlie could afford?

• A)4
• B)20
• C)5
• D)6
• E)10

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Definitions:

Factory Overhead

All indirect costs associated with the manufacturing process, including utilities, depreciation, and wages for support staff that are not directly involved in production.

Direct Labor

The cost of wages and benefits for workers who are directly involved in the production of goods or the provision of services.

Finished Goods Inventory

Inventory of finished goods available for sale but not yet purchased by customers.

Factory Overhead

Indirect costs associated with manufacturing operations, such as utilities, maintenance, and salaries of supervisory personnel.