Latanya likes to talk on the telephone. We can represent her preferences with the utility function U(B, J) = 18B + 20J,where Band J are minutes of conversation per month with Bill and Jackie, respectively.
a. If Latanya plans to use the phone for one hour to talk with only one person, with whom would she rather speak? Why?
b. What is the formula for her indifference curves? Plot a few of those curves.
c. What is Latanya's marginal utility of speaking with Bill? What is her marginal utility of speaking with Jackie?
d. What is Latanya's MRS for minutes talking to Bill with minutes talking to Jackie?