Max has $35 a day to spend,and he can spend as much time as he likes on his leisure pursuits.Windsurfing equipment rents for $10 an hour,and snorkeling equipment rents for $5 an hour.If Max equalizes the marginal utility per hour from windsurfing and from snorkeling,he
A)maximizes his total utility.
B)can increase his total utility by spending less time windsurfing and more time snorkeling.
C)can increase his total utility only if the price of windsurfing equipment rentals decreases.
D)can increase his total utility by spending more time windsurfing and less time snorkeling.
E)maximizes his marginal utility per dollar.

Question

Quizplus · Accepted Answer

The Answer of Max has $35 a day to spend,and he can spend as much time as he likes on his leisure pursuits.Windsurfing equipment rents for $10 an hour,and snorkeling equipment rents for $5 an hour.If Max equalizes the marginal utility per hour from windsurfing and from snorkeling,he
A)maximizes his total utility.
B)can increase his total utility by spending less time windsurfing and more time snorkeling.
C)can increase his total utility only if the price of windsurfing equipment rentals decreases.
D)can increase his total utility by spending more time windsurfing and less time snorkeling.
E)maximizes his marginal utility per dollar.

Max Has $35 a Day to Spend,and He Can Spend