Timothy is trying to achieve the optimum combination of bags of peanuts and bags of popcorn he should buy with his $20 budget. The price of peanuts is $5 per bag and the price of popcorn is $4 per bag. If Timothy’s marginal utility from consuming his last bag of peanuts is 20 utils and his marginal utility from consuming his last bag of popcorn is 12 utils, Timothy should? A. consume more bags of popcorn and less of peanuts. B. consume more bags of peanuts and less of popcorn. C. not change his consumption. He has already achieved the consumer optimum. D. consume fewer bags of peanuts and popcorn. E. consume more bags of popcorn and peanuts.
Timothy is trying to achieve the optimum combination of bags of peanuts and bags of popcorn he should buy with his $20 budget. The
A. consume more bags of popcorn and less of peanuts.
B. consume more bags of peanuts and less of popcorn.
C. not change his consumption. He has already achieved the consumer optimum.
D. consume fewer bags of peanuts and popcorn.
E. consume more bags of popcorn and peanuts.
Please type out the correct answer ASAP within 40 50 minutes, with proper explanation of the each option given. Will give upvote only for the correct answer.thank you.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
