The utility function for Morris is U = min {AM, T}, where M is pints of milk and T is cans of tuna. Morris has S90 to spend or tuna (prices at $2 per can) and milk (priced at $1 per pint). What is Morris's utility-maximizing consumption bundle? 1)M = 40 and T= 25 2)M= 15 and T= 65 3)M= 10 and T= 40 4)M= 30 and T= 30
The utility function for Morris is U = min {AM, T}, where M is pints of milk and T is cans of tuna. Morris has S90 to spend or tuna (prices at $2 per can) and milk (priced at $1 per pint). What is Morris's utility-maximizing consumption bundle? 1)M = 40 and T= 25 2)M= 15 and T= 65 3)M= 10 and T= 40 4)M= 30 and T= 30
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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The utility function for Morris is U = min {AM, T}, where M is pints of milk and T is cans of tuna. Morris has S90 to spend or tuna (
1)M = 40 and T= 25
2)M= 15 and T= 65
3)M= 10 and T= 40
4)M= 30 and T= 30
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