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Mike's Income Is $600 Per Month

Question 15

Multiple Choice

Mike's income is $600 per month.He spends all of it on books (B) and CDs (C) .Books cost $10 and CDs cost $15.His preferences correspond to the utility function U(B,C) = B × C.For that utility function,the marginal benefit of books is C and the marginal benefit of CDs is B.How many books and how many CDs will he purchase in a month?


A) 20 CDs and 30 Books
B) 60 CDs and 10 Books
C) 15 CDs and 40 Books
D) 30 CDs and 15 Books

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