Economics Terms Exercise - Utility Maximization

Consider an individual who is deciding to spend $40 on either coffee or snacks. A cup of coffee (x1) costs $2, while a bag of snacks (x2) costs $0.50. This person’s utility function can be represented by the Cobb-Douglas utility function U(X) = x11/2 * x21/2. How many cups of coffee and how many bags of snacks maximize this person’s utility?

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