Caitlin spends her money on tuition and books. One credit hour of tuition costs her $320; each
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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?
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Related Book For
Microeconomics
ISBN: 9781319105563
3rd Edition
Authors: Austan Goolsbee, Steven Levitt, Chad Syverson
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