2. Economics
3. claras utility function is u xaxb a she likes...

# Question: claras utility function is u xaxb a she likes...

###### Question details

Clara’s utility function is U = xAxB.

(a) She likes consuming 10 apples and 10 bananas as much as consuming 1 apple and how many bananas?

(b) Does this mean her preferences violate the assumption of convexity (prefer averages to extremes)?