If Charlie's Utility Function Is X ⁴_A X_B, the Price

question 68

Multiple Choice

If Charlie's utility function is X ⁴_A X_B, the price of apples is p_A, the price of bananas is p_B, and his income is m, then Charlie's demand for apples will be

• A)m/(2p_A).
• B)0.25 p_Am.
• C)m/(p_A + p_B).
• D)0.08m/p_A.
• E)1.25p_B m/p_A.

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Definitions:

Authority

The power or right to make decisions, direct others, and enforce obedience within a particular scope.

Plant Assets

Fixed assets that are tangible in nature, such as buildings and machinery, used in the operations of a business and expected to be useful for many years.

Profit Margin

A measure of a company's profitability, typically defined as net income divided by revenue, and expressed as a percentage.

Investment Turnover

A component of the rate of return on investment, computed as the ratio of sales to invested assets.