In Problem 7, Lolita's Utility Function Is U(x, Y)

question 2

Multiple Choice

In Problem 7, Lolita's utility function is U(x, y) , where x is her consumption of cow feed and y is her consumption of hay. If the price of cow feed is $.60, 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) 4.08.
• B) 3.40.
• C) 0.08.
• D) 6.08.
• E) 2.08.

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Definitions:

Productivity Efficiency

A metric that measures how effectively resources, such as labor and materials, are being used to produce goods and services.

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