Question

You are given the following total utilities of apples and mineral water obtained by

Answer 1

Answer:

2 apples and 6 bottles of water

Explanation:

since Bervin earns K22, her consumption possibilities frontier is:

apple                water                  total utils obtained

4 units               1 unit                   90 + 20 = 110 utils

3 units               3 units                75 + 54 = 129 utils

2 units               6 units                55 + 90 = 145 utils

1 unit                  8 units                30 + 98* = 128 utils

0 units               11 units                0 + 98* = 98 utils

The optimal combination of apples and bottles of water is 2 apples and 6 bottles of water because that combination yields the most utils.

*Since the table only states the utils obtained until the 7th unit, we must assume that any additional unit consumed will provide 0 utils.