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Suppose that Jana cares only about apples and lettuce. Her utility function is U = A0.5L0.5,...

Suppose that Jana cares only about apples and lettuce. Her utility function is U = A0.5L0.5, where A is the number of apples and L is the number of heads of lettuce that she consumes. The price of apples is $1, and the price of lettuce is $4. Suppose that Jana must have 100 units of utility and wants to achieve this level of utility with the lowest possible expenditure. How much does this optimal solution cost?

$400

$50

$75

$100

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Answer #1

2. 2. 2 A/2 1f2 2 レ MUL 2 A/2 t A/2它 s m and| M\/2 t[4]2 Aと L4

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