Mr.Angst has two children, Dick and Jane.Dick is a slow learner and Jane is very bright.If Mr.Angst spends $X per month on Dicks education, Dick will score a total of X/2 points on his SAT tests.If Mr.Angst spends $Y per month on Janes education, she will score a total of 2Y on her SAT tests.Mr.Angst has a utility function U(D, J)= min{D, J}, where D is Dicks SAT score and J is Janes SAT score.To maximize his utility, he will spend
A)equal amounts of money on the two children.
B)4 times as much money on Dick's education as on Jane's.
C)4 times as much money on Jane's education as on Dick's.
D)between 1 and 2 times as much money on Dick's education as on Jane's.
E)between 1 and 2 times as much money on Jane's education as on Dick's.

Question

Quizplus · Accepted Answer

To maximize utility U(D, J) = min{D, J}, Mr. Angst should equalize the SAT scores of Dick and Jane. Since Dick's score is X/2 and Jane's score is 2Y, setting X/2 = 2Y gives X = 4Y. Thus, he should spend 4 times as much on Dick's education as on Jane's.

MrAngst Has Two Children, Dick and Jane