Solved

Sam Has $200 a Month to Spend on Either Tanning

Question 16

Multiple Choice

Sam has $200 a month to spend on either tanning sessions or rounds of golf. Tanning sessions are $20 each and a round of golf is $40. What can we say about Sam's utility?


A) Sam will receive more utility from each round of golf than each tanning session.
B) Sam will receive the same utility from one round of golf as he would from two tanning sessions.
C) Sam will maximize the utility he receives from 2 rounds of golf and 6 tanning sessions.
D) This question cannot be answered without more information.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions