Mort consumers only beer and sausages. His income is $100. Beer costs him $0.50 per can and sausages cost $1 each, where x is the number of cans of beer and y is the number of sausages he consumes per week. Mort's utility function is U(x,y)= − [(x − 50)² + (y−40)²]. What consumption bundle does he choose? a. b. C. O d. e. (52, 56) (76,80) None of them (64, 68) (58, 62)
Mort consumers only beer and sausages. His income is $100. Beer costs him $0.50 per can and sausages cost $1 each, where x is the number of cans of beer and y is the number of sausages he consumes per week. Mort's utility function is U(x,y)= − [(x − 50)² + (y−40)²]. What consumption bundle does he choose? a. b. C. O d. e. (52, 56) (76,80) None of them (64, 68) (58, 62)
Chapter10: Consumer Choice Theory
Section: Chapter Questions
Problem 8P
Related questions
Question
100%
![Mort consumers only beer and
sausages. His income is $100.
Beer costs him $0.50 per can and
sausages cost $1 each, where x is
the number of cans of beer and y
is the number of sausages he
consumes per week. Mort's utility
function is
U(x,y)= − [(x − 50)² + (y−40)²].
What consumption bundle does he
choose?
a.
b.
C.
O d.
e.
(52, 56)
(76,80)
None of them
(64, 68)
(58, 62)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcc75e38d-2bfd-4a1e-962e-6890913e08e0%2F31d9eb26-f794-4f0f-8e36-59ef9d274c69%2Fm5ytcsj_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Mort consumers only beer and
sausages. His income is $100.
Beer costs him $0.50 per can and
sausages cost $1 each, where x is
the number of cans of beer and y
is the number of sausages he
consumes per week. Mort's utility
function is
U(x,y)= − [(x − 50)² + (y−40)²].
What consumption bundle does he
choose?
a.
b.
C.
O d.
e.
(52, 56)
(76,80)
None of them
(64, 68)
(58, 62)
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Exploring Economics
Economics
ISBN:
9781544336329
Author:
Robert L. Sexton
Publisher:
SAGE Publications, Inc
Microeconomics: Private and Public Choice (MindTa…
Economics
ISBN:
9781305506893
Author:
James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:
Cengage Learning
Exploring Economics
Economics
ISBN:
9781544336329
Author:
Robert L. Sexton
Publisher:
SAGE Publications, Inc
Microeconomics: Private and Public Choice (MindTa…
Economics
ISBN:
9781305506893
Author:
James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:
Cengage Learning
Economics: Private and Public Choice (MindTap Cou…
Economics
ISBN:
9781305506725
Author:
James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:
Cengage Learning
Principles of Economics 2e
Economics
ISBN:
9781947172364
Author:
Steven A. Greenlaw; David Shapiro
Publisher:
OpenStax
