Max Gross has the utility function U(x, y)= max{x, y}.If the price of x is the same as the price of y, Max will buy equal amounts of x and y.

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Quizplus · Accepted Answer

Max's utility function, as described, suggests he will maximize utility by choosing the combination of x and y that gives him the highest utility. The statement that he will buy equal amounts of x and y if the prices are the same does not necessarily follow from the utility function provided, as his decision would also depend on his preferences, the specific form of the utility function (which is unclear from the provided text), and his budget constraint.

Max Gross Has the Utility Function U(x, Y)= Max{x, Y}