Question
Catrina buys two goods, food F and clothing C , with the utility function U = FC + F . Her marginal utility of food
Catrina buys two goods, foodFand clothingC, with the utility functionU=FC+F. Her marginal utility of food isMUF=C+1 and her marginal utility of clothing isMUC=F. She has an income of $100. The price of clothing is $4. The price of food rises from 1 to 4. What is the utility level at the decomposition basket?
- A.12
- B.676
- C.52
- D.169
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Managerial Economics and Organizational Architecture
Authors: James Brickley, Jerold Zimmerman, Clifford W. Smith Jr
5th edition
73375829, 978-0073375823
