Homer is a street person whose preferences over the two goods he consumes, food (good 1) and fortified wine (good 2) are represented by the utility function u(x1,x2)=x1x28 (mu1=x28, and mu2=8x1x27). homer receives a pension of $100.00 per week. he can buy food at the local dispensary at a price of $4 a bucket. the local convenience store sells fortified wine at $6 a gallon jug. a. what is homer's mrs? b. assuming that homer stays sober long enough to maximize preferences, what are homer consumption levels of food and wine?
by knowing conditionality
there is a app that you show the question and it anwsers it in the app store
b is the correct answer
hi there, i would say your answer is:
b. there is a fixed quantity of resources and technology available.
hope that : )