Lolita's utility function is U(x, y) = x - x2/2 + y, where x is her consumption of cow feed and y is her consumption of hay.If the price of cow feed is $.10, the price of hay is $1, and her income is $2 and if Lolita chooses the combination of hay and cow feed that she likes best from among those combinations she can afford, her utility will be
A) 2.40.
B) 3.40.
C) 0.40.
D) 1.90.
E) 1.40.
Correct Answer:
Verified
Q20: Ms.Quasimodo has the utility function U(x,
Q21: Kitty's utility function for BMWs and money
Q22: Betsy's utility function for BMWs and money
Q23: Betsy's utility function for BMWs and money
Q24: Cindy's utility function for BMWs and money
Q25: Lolita's utility function is U(x, y)=x -
Q26: Lolita's utility function is U(x, y)=
Q28: Desiree's utility function for BMWs and money
Q29: Lolita's utility function is U(x, y)= x
Q30: Lolita's utility function is U(x, y)=x -
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents