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

question 23

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 $4, and the price of bananas were $6, how many apples would there be in the best bundle that Charlie could afford?

• A)8
• B)10
• C)12
• D)9
• E)5

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Definitions:

Cost of Goods Sold

The total costs directly involved in producing goods or providing services, including materials and labor, that are sold to customers.

Net Income

The total profit of a company after all expenses and taxes have been subtracted from total revenues, often referred to as the bottom line.

Manufacturing Costs

The total expenses directly tied to the production of goods, including raw materials, labor, and overhead costs.

Raw Materials

Basic substances in their natural, modified, or semi-processed state used as inputs for a production process.