May 2021 1 68 Report
Optimal Choices - Economics?

Samspends her entire monthly income of $600 on champagne (C) and

perfume (F). The price of a bottle of champagne is $30 and the price of an ounce

of perfume is $10. If she consumes 12 bottles of champagne and 24 ounces of

perfume, her MRS is -1. Is her choice optimal?

What does it mean by optimal?

Please enter comments
Please enter your name.
Please enter the correct email address.
You must agree before submitting.

Answers & Comments


Helpful Social

Copyright © 2024 Q2A.ES - All rights reserved.