Caroline Sierra loves to eat raspberry-apple cobblers, but will only do so if the raspberries and apples are used in the ratio of 3 ounces of raspberries to 2 ounces of apples. Assume that each cobbler uses exactly 3 ounces of raspberries and 2 ounces of apples. Each cobbler eaten yields 1 unit of utility, and the utility of cobblers is linear in the number eaten. Say the price of raspberries is $5 per ounce and the price of apples is $2 per ounce. What is the cost of achieving 20 units of utility?
A) $380
B) $19
C) $20

Question

Quizplus · Accepted Answer

To make one cobbler, Caroline needs 3 ounces of raspberries and 2 ounces of apples in a ratio of 3:2.
Therefore, for every 3 ounces of raspberries, she needs 2 ounces of apples.
Thus, the total cost of ingredients for one cobbler is:
3 ounces of raspberries × $5 per ounce + 2 ounces of apples × $2 per ounce = $15 + $4 = $19

Each cobbler yields 1 unit of utility, so to achieve 20 units of utility, Caroline needs to eat 20 cobblers.

Therefore, the cost of achieving 20 units of utility is:
20 cobblers × $19 per cobbler = $380

So, the best choice is A.

Caroline Sierra Loves to Eat Raspberry-Apple Cobblers, but Will Only