Multiple Choice
Suppose that Arthur cares only about video games and coffee. His utility function is U = VC, where V is the number of video games that he plays and C is the number of cups of coffee that he drinks. The price of video games is $50, and the price of coffee is $3. Arthur has a budget of $800. Which levels of V and C maximize Arthur's utility?
A) V = 10 and C = 100
B) V = 13 and C = 50
C) V = 16 and C = 0
D) V = 8 and C = 133.33
Correct Answer:
Verified
Correct Answer:
Verified
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