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

question 19

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 $3, how many apples would there be in the best bundle that Charlie could afford?

• A)6
• B)20
• C)4
• D)5
• E)10

---

Definitions:

Merger

A strategic business action where two entities consolidate their assets, operations, and management with the aim of fostering growth or competitive advantage.

Shareholder Rights Plan

A defensive strategy used by corporations to deter hostile takeovers by issuing new shares to existing shareholders, making a takeover more expensive.

Hostile Takeover

An acquisition attempt by a company or investor to obtain control of another company against the wishes of the target company's management and board of directors.

Takeover Bid

An offer made to acquire a controlling stake or all of a company's shares, either friendly or hostile.