Question
Suppose Bill is on a low-carbohydrate diet. He can eat only three foods: Rice Krispies, cot-tage cheese, and popcorn. The marginal utilities for each food
Suppose Bill is on a low-carbohydrate diet. He can eat only three foods: Rice Krispies, cot-tage cheese, and popcorn. The marginal utilities for each food are tabulated below. Bill is allowed only 167 grams of carbohydrates daily. Rice Krispies, cottage cheese, and popcorn provide 25, 6, and 10 grams of carbohydrates per cup, respectively. Referring to the accompanying table, respond to the following questions: Units of food (cups/day)Marginal utility of Rice Krispies Marginal utility of cottage cheese Marginal utility of popcorn1 175 72 902 150 66 803 125 60 704 100 54 605 75 48 506 50 36 407 25 30 308 25 18 20
a. Given that Bill can consume only 167 grams of carbohydrates daily, how many cups of each food will he consume daily? Show your work
.b. Suppose Bill's doctor tells him to further reduce his carbohydrate intake to 126 grams per day. What combination will he consume?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started