Maximizing utility from consumption of goods

Given that a MU of French fries of 35 utils and a MU for serving of potato chips at 25 utils, when their respective prices are $1.50 and $.80, the person who wants to maximize utility from the consumption of both of such goods would consume: (i) The similar amount of servings of both the goods. (ii) Extra French fries associative to potato chips. (iii) Extra potato chips associative to French fries. (iv) Can’t be determined from information provided.

Can someone help me in getting through this problem.

View Complete Question

Related Questions in Microeconomics

Q : What is Complements Complements : The

Complements: The two goods for which a rise in the price of one good leads to a reduction in the demand for other.

Q : Exhibiting Predatory Behavior If a firm

If a firm attempts to drive rivals from its market and after that raises prices and adopts a strategy to deter entry, this is exhibiting: (w) grim strategy. (x) tit-for-tat strategy. (y) predatory behavior. (z) Nash equilibrium.

Q : Income effect dominating substitution

The personal supply of labor is characterized by the income effect which dominates the substitution effect if: (1) Trina retires to beach condo subsequent to working for the city for 42-years. (2) Members of a rock band give up touring for a year subsequent to their s

Q : Inflation premium Describe the term

Describe the term Inflation premium and how it is the prospect of future inflation?

Q : Describe inferior goods in economics

Inferior goods in economics: Inferior goods refer to such goods whose demand reduces with the rise in income of consumer.

Q : Long-run supply in constant cost

Within a constant-cost industry: (w) short-run supply is totally elastic. (x) long-run supply is completely elastic. (y) short-run supply is fully inelastic. (z) long-run supply is wholly inelastic. I need a good a

Q : Personal distribution of income Select

Select the right ans wer of the question. The personal distribution of income refers to the: A) division of income between personal taxes, consumption expenditures, and saving. B) division of income on the basis of industry sources, for example, agriculture, transport

Discover Q & A

Leading Solution Library

Avail More Than 1417396 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads

No hassle, Instant Access

Start Discovering

18,76,764

1931537
Asked

3,689

Active Tutors

1417396

Questions
Answered

Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

Submit Assignment