Here's the question you clicked on:

55 members online
  • 0 replying
  • 0 viewing

mattygb2128

  • 3 years ago

Miss Muffet always likes to have things "just so". In fact, the only way she will consume her curds and whey is 2 Units of Curds with 1 Unit of Whey. I know the Utility function is U=min(2W, C) Miss Muffet has $12. P for curds is $1, and P for Whey is $2. What is the utility maximizing bundle?? and how!?

  • This Question is Open
  1. ANGELNAV
    • 2 years ago
    Best Response
    You've already chosen the best response.
    Medals 0

    \[Pc \times C + Pw \times W = M \] so \[C +2W=12\] and also 2W=C so solving above 2 equations, v get 4W=12 W=3 n C=6

  2. Not the answer you are looking for?
    Search for more explanations.

    • Attachments:

Ask your own question

Sign Up
Find more explanations on OpenStudy
Privacy Policy