Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

Tintin is a young Belgian reporter and an adventurer. He is currently in Shanghai, China, working on his case, The Blue Lotus, with his wire

Tintin is a young Belgian reporter and an adventurer. He is currently in Shanghai, China, working on his case, "The Blue Lotus", with his wire fox terrier, Snowy. In the midst of his busy schedule, Tintin needs to figure out what to eat for lunch. His aim is to maximize his utility/satisfaction level from consuming the meal.

Tintin has two food choices available to him: one of China's famous noodles dish, Dandanmian, and some pearl meatballs, a delicious dish from central China.

Tintin is a young and busy reporter with a healthy appetite. He needs to find out the optimal number of noodles servings and meatballs servings that will maximize his satisfaction from lunch.

Let one small bowl (i.e., one serving) of dandanmian be denoted byX1,and the price of one serving to be3Chinese yuan.

Let one serving of pearl meatballs be denoted byX2and the price of one serving to be4Chinese yuan.

Tintin has24 yuanavailable as his lunch money. His utility function is given by the following utility function; U(X1, X2) = 6X1X2.

Can you help Tintin find hisoptimal "noodles-meatballs" consumption bundle? Before you do that, answer the following questions.

Question: Given Tintin's utility function, what is Tintin's level of utility for2servings ofX1and2servings ofX2?

Group of answer choices

a. U = 6

b. U = 12

c. U = 24

d. U = 36

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

International Marketing And Export Management

Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr

8th Edition

1292016922, 978-1292016924

Students also viewed these Economics questions

Question

=+2 Identify the treatment and response.

Answered: 1 week ago