Consider a consumer choosing between spending her money on food,F,or clothing,C. Assume that a unit of food and a unit of clothing have the same price, and that the consumer can afford a total of 20 units of either food or clothing. If B stands for benefits then "B(F) + B(C)" is the:
A) constraint.
B) objective function.
C) optimization problem.
D) sunk cost.

Question

Quizplus · Accepted Answer

The expression "B(F) + B(C)" represents the total benefits derived from consuming food and clothing, which is what the consumer aims to maximize. This makes it the objective function in the context of an optimization problem where the consumer seeks to allocate her budget between food and clothing to maximize her total benefits.

Consider a Consumer Choosing Between Spending Her Money on Food,F,or