1. Charlie has a utility function U(A, B) = A3B. The price of apples is $5,...

1. Charlie has a utility function U(A, B) = A3B. The price of apples is $5, and the price of bananas is $1. If Charlie’s income is $200, how many units of bananas would he consume if he chose the bundle that maximizes his utility subject to his budget constraint?

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2. Charlie has a utility function U(A, B) = A3B. The price of apples is $5, and the price of bananas is $1. If Charlie’s income is $200, how many units of apples would he consume if he chose the bundle that maximizes his utility subject to his budget constraint?

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Rahul Sunny answered 5 months ago

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