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mel-nik [20]
3 years ago
11

Astrid currently consumes only milk and honey. She drinks four quarts of milk priced at $3 per quart and gets 30 utils for the l

ast quart. She consumes thirteen jars of honey at a price of $0.75 per jar and gets 7.5 utils for the last jar. Is Astrid maximizing her utility?
Business
1 answer:
asambeis [7]3 years ago
4 0

Answer:

Yes, the Astrid maximizing her utility

Explanation:

Given that

Utils for the last quart = 30

Per quart = $3

Honey price = $0.75

Utils of Last jar = 7.5

The calculation of maximum utility is given below:-

Per dollar utility gained by milk

= 30 ÷ 3

= 10 utils

Milk utility for $0.75

= 30 ÷ 3 × $0.75

= 7.5 utils

Therefore from the last quart the utility was same and the dollars was spent in last jar. So, Astrid can maximizing her utility.

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