Hans receives utility from consuming the C and F as given by the utility function U(F, C) = FC. In addition, the price of C is $10 per unit, the price of F is $2 per unit, and Hans' weekly income is $50.
1. Determine Hans' marginal rate of substitution of C for F when the utility is maximized?
2. Assume instead that Hans is consuming a bundle with more F and less C than his utility maximizing bundle. Would his marginal rate of substitution be greater than or less than your answer in part a? Discuss.