Ahmed purchases only two goods, mangoes (M) and coconuts (C). He has an income of $100 and can buy one mango for $10 and one coconut for $5. His utility function is U(M,C) = 5M + 2C; that is, his constant marginal utility is 5 for mangoes and 2 for coconuts. What bundle of mangoes and coconuts should Ahmed purchase to maximize his utility? Why?

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Ahmed purchases only two goods, mangoes (M) and coconuts (C). He has an income of $100 and can buy one mango for $10 and one coconut for $5. His utility function is U(M,C) = 5M + 2C; that is, his constant marginal utility is 5 for mangoes and 2 for coconuts. What bundle of mangoes and coconuts should Ahmed purchase to maximize his utility? Why?

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