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Charlie's Utility Function Is U(xA, XB) = XAxB

Question 10

Multiple Choice

Charlie's utility function is U(xA, xB) = xAxB. If Charlie's income were $40, the price of apples were $5, and the price of bananas were $8, how many apples would there be in the best bundle that Charlie could afford?


A) 8
B) 11
C) 10
D) 15
E) 4

Correct Answer:

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