Max Has $35 a Day to Spend,and He Can Spend

question 25

Multiple Choice

Max has $35 a day to spend,and he can spend as much time as he likes on his leisure pursuits.Windsurfing equipment rents for $10 an hour,and snorkeling equipment rents for $5 an hour.If Max equalizes the marginal utility per hour from windsurfing and from snorkeling,he

• A)maximizes his total utility.
• B)can increase his total utility by spending less time windsurfing and more time snorkeling.
• C)can increase his total utility only if the price of windsurfing equipment rentals decreases.
• D)can increase his total utility by spending more time windsurfing and less time snorkeling.
• E)maximizes his marginal utility per dollar.

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Definitions:

Better Outcomes

refers to improved results or benefits achieved through particular actions or decisions.

Efforts

The physical or mental energy exerted towards achieving goals, tasks, or overcoming challenges.

Performance

The act of carrying out a task or function, often measured against known standards of accuracy, completeness, and speed.

Schedule Preference

Refers to an individual's or group's favorability towards certain times or periods for performing tasks or activities.