Question
You have $64 to spend on fish (F) and chips (C). Suppose the price per unit of fish (Pf) is $8 and the price of
You have $64 to spend on fish (F) and chips (C). Suppose the price per unit of fish (Pf) is $8 and the price of chips (Pc) is $2. Your utility function for fish and chips is given as
such that
MUc.=
and
MUF=
are the marginal utilities of F and C. How many units of C and F should you buy to exhaust all income and to maximize utility?
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Project Management A Systems Approach to Planning Scheduling and Controlling
Authors: Harold Kerzner
10th Edition
978-047027870, 978-0-470-5038, 470278706, 978-0470278703
