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Sam---a friend of Ashwin---has the same amount of spare time (48 hours per month) and same amount of money to spend on entertainment ($324 per

Sam---a friend of Ashwin---has the same amount of spare time (48 hours per month) and same amount of money to spend on entertainment ($324 per month). He faces the same constraints as Ashwin. However, Ashwin and Sam have slightly different preferences over cricket (x) and movies (y).

  • Sam's utility function: U(x,y) = x + y
  • Ashwin's utility function: V(x,y) = min{x,y}

Each maximizes their own utility.

  1. What is/are the utility maximizing bundle/s for Sam?
  2. What is/are the utility maximizing bundles for Ashwin?

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