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Logan consumes olives (x1) and ice cream (x2). He prefers to eat them only separately (never together). In particular, his utility function is given by:
Logan consumes olives (x1) and ice cream (x2). He prefers to eat them only separately (never together). In particular, his utility function is given by: u(x1,x2)= x12 x22. If his income is $10 and the price of olives is $1 and the price of ice cream is $2. Which of the following is FALSE? Group of answer choices The utility level at a bundle (2,4) is 20 The optimal bundle Logan will choose to consume is (2,4) The utility level when he spends all of his income on good 2 is 25 The utility level when he spends all of his income on good 1 is 100 None of the above
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