Question: If Charlie's utility function were X 3 A X B , if apple costs 60 cents each, and if bananas cost 10 cent each, Charlie's
If Charlie's utility function were X3AXB, if apple costs 60 cents each, and if bananas cost 10 cent each, Charlie's budget line would be tangent to one of his indifference curve whenever:
1- XB = XA
2- XA = 3XB
3- 3XB = 6XA
4- 60XA + 10XB= M
5- XB = 3XA
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
