Cindy takes a Club Med vacation, the cost of which includes unlimited sports activities. With no extra charge for golf and tennis, Cindy allocates a total of 4 hours a day to these activities.
a. How many hours does Cindy play golf and how many hours does she play tennis?
b. What is Cindy’s marginal utility from golf and from tennis?
c. Why does Cindy equalize the marginal utilities rather than the marginal utility per dollar from golf and from tennis?