Jonas purchases only two goods, starfruit (s) and kiwi (k). he has an income of $60 and can buy starfruit at $2 per pound and ki

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1 year ago

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wi at $3 per pound. his utility function is:_________-

1 answer:

GrogVix [38] · Answer 1 · 2024-08-27T06:53:33+03:00

The Utility Function Shows That S and K can be used interchangeably, according to the utility function, and only one of them is really consumed.

Utility in economics refers to the pleasure or happiness that customers derive from using an item or service. Consumer preferences for a variety of products and services are gauged by the utility function.

<u>CALCULATION</u>

Although the benefit or happiness that customers experience is calculated in units called utils

Hence only S will be employed.

'Starfruit' = 60 / 2 = '30

Kiwi = 0

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