Sam has $200 a month to spend on either tanning sessions or rounds of golf. Tanning sessions are $20 each and a round of golf is $40. What can we say about Sam's utility?
A)Sam will receive more utility from each round of golf than each tanning session.
B)Sam will receive the same utility from one round of golf as he would from two tanning sessions.
C)Sam will maximize the utility he receives from 2 rounds of golf and 6 tanning sessions.
D)This question cannot be answered without more information.

Question

Quizplus · Accepted Answer

The question does not provide enough information about Sam's preferences or the utility he derives from tanning sessions and rounds of golf. Utility is subjective and varies from person to person, so without specific information about Sam's preferences, it's impossible to determine how he will allocate his budget to maximize utility.

Sam Has $200 a Month to Spend on Either Tanning