Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

[6] Hom Tanks has exactly 12 hours per day to spend gathering coconuts or catching fish. He can catch 3 fish per hour or he

image text in transcribed
[6] Hom Tanks has exactly 12 hours per day to spend gathering coconuts or catching fish. He can catch 3 fish per hour or he can pick 15 coconuts per hour. His utility function is UF. C) = FC where F is his consumption of fish and C is his consumption of coconuts. If he allocates his time in the best possible way between catching fish and picking coconuts, his consumption will be the same as it would be if he could buy fish and coconuts in a competitive market where the price of coconuts is 51. What is the price of fish and what is his income [at competitive equilibrium prices}

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Microeconomics

Authors: Hal R. Varian

9th edition

978-0393123975, 393123979, 393123960, 978-0393919677, 393919676, 978-0393123968

More Books

Students also viewed these Economics questions

Question

describe the distinct effects of positive emotions;

Answered: 1 week ago

Question

Peoples understanding of what is being said

Answered: 1 week ago

Question

The quality of the proposed ideas

Answered: 1 week ago