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 get more utility from each round of golf than each tanning session.
B) Sam will get the same utility from one round of golf as he would from two tanning sessions.
C) Sam will maximize his utility from 2 rounds of golf and 6 tanning sessions.
D) We cannot say anything about Sam's utility from the consumption of these goods without more information.

Question

Quizplus · Accepted Answer

We cannot determine Sam's utility from the consumption of these goods without knowing his preferences or utility function.

Sam Has $200 a Month to Spend on Either Tanning