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Kermit gets utility from algae (A) and houseflies (H). His utility function is U = 6A0.5H0.5. That implies MUA is equal to 3(H0.5/A0.5) and MUH
Kermit gets utility from algae (A) and houseflies (H). His utility function is U = 6A0.5H0.5. That implies MUA is equal to 3(H0.5/A0.5) and MUH is equal to 3(A0.5/H0.5). Kermit's budget for algae and houseflies is $16 per month. The price of algae is $4 per ounce and the price of houseflies is $1 apiece. Kermit's optimum monthly consumption bundle is 2 ounces of algae and ___ houseflies
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