Lolita, the Holstein Cow, Has a Utility Function Is

question 9

Multiple Choice

Lolita, the Holstein cow, has a utility function is , where x is her consumption of cow feed and y is her consumption of hay. If the price of cow feed is $.30, the price of hay is $1, and her income is $4, and if Lolita chooses the combination of hay and cow feed that she likes best from among those combinations she can afford, her utility will be

• A) 4.25.
• B) 3.70.
• C) 0.25.
• D) 6.25.
• E) 2.25.

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