205,064 views
1 vote
1 vote
You are given the following total utilities of apples and mineral water obtained by

Bervin. Given that each apple cost K5 each bottle of water cost K2, and Bervin's
income is K22,
find the optimal combination of apples and bottles of mineral
water


User Jonathan Rupp
by
3.4k points

1 Answer

4 votes
4 votes

Answer:

2 apples and 6 bottles of water

Step-by-step 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.

You are given the following total utilities of apples and mineral water obtained by-example-1
User Leon Barkan
by
3.5k points