1) MCQ
Option A)
At Utility Maximization : MU/P is Equalized across all goods
At current combination
MUC/PC = 12/1 IS NOT EQUAL TO MUf/Pf = 12/2 = 6
& As MUc/Pc > MUf/Pf
So consume more C than F
Combination | C | MUc/Pc | F | MUf/Pf | consumer eqm |
A | 20 | 16 | 30 | 5 | No |
B | 40 | 8 | 20 | 6 | No |
C | 30 | 12 | 30 | 5 | No |
Download | 50 | 4 | 40 | 4 | yes |
Budget : 130
At eqm, MUc/Pc = MUf/Pf
MUc/MUf = Pc/Pf = 1/2
BC: C + 2F = 130
& C/F = 50/40 = 5/4 = 1.25
put, C = 1.25F
3.25F = 130
F* = 40
C* = 50
Cheese : 50 pound
Fruits : 40 pound
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