Georgina Consumes Only Grapefruits and Pineapples

question 6

Multiple Choice

Georgina consumes only grapefruits and pineapples.Her utility function is U(x, y) = x²y⁸, where x is the number of grapefruits consumed and y is the number of pineapples consumed.Georgina's income is $105, and the prices of grapefruits and pineapples are $1 and $3, respectively.How many grapefruits will she consume?

• A)10.5
• B)7
• C)63
• D)21
• E)None of the above.

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Definitions:

Labor's Productivity Growth

Refers to the increase in the amount of goods and services produced by one hour of labor.

Marginal Product

The additional output that is produced by using one more unit of a variable input.

Average Product

This measures the productivity of inputs by dividing total production by the number of inputs, indicating the efficiency of input use.

Total Product

The total quantity of output produced by a firm or economy as a result of combining inputs of labor and capital over a specific time period.