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Jason likes to buy guitars and trumpets




Question;Jason likes to buy guitars and trumpets. His marginal utility of guitars is given by MUG = (7T0.3)/(10G0.3) and his marginal utility for trumpets is given by MUT = (3G0.7)/(10T0.7), where G is the number of guitars Jason buys and T is the number of trumpets Jason buys. Guitars cost $100 each, trumpets cost $150 each, and Jason has income of $2,000. What combination of guitars and trumpets would maximize Jason?s utility?1) 8 guitars and 8 trumpets2) 11 guitars and 6 trumpets3) 17 guitars and 2 trumpets4) 14 guitars and 4 trumpets5) none of the above


Paper#57112 | Written in 18-Jul-2015

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