Andy purchases only two goods, apples (a) and kumquats (k). He has an income of $80 and can buy apples at $1 per pound and kumquats at $2 per pound. His utility function is U(a, k) = 3a + 5k. That is, his constant marginal utility for apples is 3 and his constant marginal utility for kumquats is 5. What bundle of apples and kumquats should Andy purchase to maximize his utility? Why? Andy should maximize his utility buy purchasing number.) apples (Ibs.) and kumquats (Ibs.). (Enter your responses rounded to the nearest whole

Andy purchases only two goods, apples (a) and kumquats (k). He has an income of $80 and can buy apples at $1 per pound and kumquats at $2 per pound. His utility function is U(a, k) = 3a + 5k. That is, his constant marginal utility for apples is 3 and his constant marginal utility for kumquats is 5. What bundle of apples and kumquats should Andy purchase to maximize his utility? Why? Andy should maximize his utility buy purchasing number.) apples (Ibs.) and kumquats (Ibs.). (Enter your responses rounded to the nearest whole

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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