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:
Net Income
The profit or loss of a business after all expenses, taxes, and costs have been subtracted from total revenue.
Expenses
Costs incurred by a business in the process of earning revenues.
Internal Users
Individuals within an organization who use financial information to make decisions, including management and employees.
Company Officers
Individuals with executive roles responsible for managing the operations and affairs within a corporation, such as CEOs and CFOs.
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