Suppose a Person Has $20 and Likes Both Rap Music $\mathrm { U } = \mathrm { C } ^ { 1 / 2 } \mathrm { R } ^ { 1 / 2 }$

question 14

Multiple Choice

Suppose a person has $20 and likes both rap music (R) and country music (C) with a set of preferences so that $\mathrm { U } = \mathrm { C } ^ { 1 / 2 } \mathrm { R } ^ { 1 / 2 }$ . Suppose that the iTunes price of a rap music song is $P _ { R } = 2$ and the price of a country music song is $P _ { C } = 1$ . What is the lowest level of $\text { utility that }$ is unaffordable?

• A)6
• B)7
• C) \(\sqrt { 50 }\)
• D)8

---

Definitions:

Normal Return

The minimum profit necessary to keep a company in business, regarded as the cost of capital in the long run.

Investment

The allocation of resources, usually money, in order to earn a future return or profit.

Performance Objectives

Specific goals set for employees or departments, focusing on output, efficiency, and impact to guide and improve performance.