Arnie Ziffel has $20 per week to spend on any combination of pineapples and green tea. The price of a pineapple is $4 and the price of a bottle of green tea is $2. The table below shows Arnie's utility values. Use the table to answer the questions that follow the table.
a. Complete the table by filling in the blank spaces.
b. Suppose Arnold purchases 4 pineapples and 2 bottles of green tea. Is he consuming the optimal consumption bundle? If so, explain why. If not, what combination should he buy and why?
Definitions:
Financial Statements
Documents that provide an overview of a company or individual's financial condition, including balance sheets, income statements, and cash flow statements.
Public Funds
Financial resources collected and spent by government entities for the benefit and administration of public services.
General Partners
Individuals in a partnership who share equally in both the management of the business and the liability for the business's debts.
Limited Partnership
A form of partnership comprised of one or more general partners who manage the business and have unlimited liability, and one or more limited partners who have limited liability and do not participate in day-to-day management.
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