Caitlin spends her money on tuition and books. One credit hour of tuition costs her $320; each

Question:

Caitlin spends her money on tuition and books. One credit hour of tuition costs her $320; each book costs her $200. Currently, the marginal utility of a credit hour to Caitlin is 80; the marginal utility of another book is 40.

a. Is Caitlin maximizing her utility?

b. Should Caitlin buy more books and enroll in fewer credit hours?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Microeconomics

ISBN: 9781319105563

3rd Edition

Authors: Austan Goolsbee, Steven Levitt, Chad Syverson

Question Posted: