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Suppose That Eugene Cares Only About Action Figures and Ice

Question 128

Multiple Choice

Suppose that Eugene cares only about action figures and ice cream. His utility function is U = A0.33C0.67, where A is the number of action figures he owns and C is the number of scoops of ice cream he eats. The price of action figures is $10, and the price of ice cream is $4. Eugene has a budget of $100. How can Eugene's utility maximization problem be expressed as a Lagrangian equation?


A) Suppose that Eugene cares only about action figures and ice cream. His utility function is U = A<sup>0.33</sup>C<sup>0.67</sup>, where A is the number of action figures he owns and C is the number of scoops of ice cream he eats. The price of action figures is $10, and the price of ice cream is $4. Eugene has a budget of $100. How can Eugene's utility maximization problem be expressed as a Lagrangian equation? A) B) C) D)
B) Suppose that Eugene cares only about action figures and ice cream. His utility function is U = A<sup>0.33</sup>C<sup>0.67</sup>, where A is the number of action figures he owns and C is the number of scoops of ice cream he eats. The price of action figures is $10, and the price of ice cream is $4. Eugene has a budget of $100. How can Eugene's utility maximization problem be expressed as a Lagrangian equation? A) B) C) D)
C) Suppose that Eugene cares only about action figures and ice cream. His utility function is U = A<sup>0.33</sup>C<sup>0.67</sup>, where A is the number of action figures he owns and C is the number of scoops of ice cream he eats. The price of action figures is $10, and the price of ice cream is $4. Eugene has a budget of $100. How can Eugene's utility maximization problem be expressed as a Lagrangian equation? A) B) C) D)
D) Suppose that Eugene cares only about action figures and ice cream. His utility function is U = A<sup>0.33</sup>C<sup>0.67</sup>, where A is the number of action figures he owns and C is the number of scoops of ice cream he eats. The price of action figures is $10, and the price of ice cream is $4. Eugene has a budget of $100. How can Eugene's utility maximization problem be expressed as a Lagrangian equation? A) B) C) D)

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