Suppose c1 and c2 represent the quantities of two goods that an individual consumes. The consumer has preferences that can be represented by the following utility function, U = 2(? c1 + ? c2).

1. Complete the following table, calculating the utility level for each bundle.

2. Plot the bundles, with c1 on the horizontal axis.

3. Based on your calculations, draw appropriate indifference curves through the points you have plotted.

4. What type of marginal utility do these preferences exhibit?

5. Suppose the consumer's budget is M=264.24, and the prices of the two goods are P1=40.88 and P2=35.40. On your previous diagram, plot the consumer's budget constraint (BC). Identify their optimal choice and comment on this choice.

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