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Please show all your work, thank you! 5. Jonas purchases only two goods, starfruit (S) and kiwi (K). He has an income of $60 and
Please show all your work, thank you!
5. Jonas purchases only two goods, starfruit (S) and kiwi (K). He has an income of $60 and can buy starfruit at $2 per pound and kiwi at $3 per pound. His utility function is U(S,K) = 35' + 4K . That is, his (constant) marginal utility for starfruit is 3 and his marginal utility for kiwi is 4. What bundle of starfruit and kiwi should he purchase to maximize his utility? WhyStep by Step Solution
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