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17 November, 10:36

Ray buys only hamburgers and bottles of root beer out of a weekly income of $100. He currently consumes 20 bottles of root beer per week, and his marginal utility of root beer is 6. The price of root beer is $2 per bottle. Currently, he also consumes 15 hamburgers per week, and his marginal utility of a hamburger is 8. Is Ray max - imizing utility at his current consumption basket? If not, should he buy more hamburgers each week, or fewer?

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  1. 17 November, 10:42
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    fewer hamburgers

    Explanation:

    cuz he is buying more than his limit, more than he should.
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