Robinson Crusoe Has Exactly 12 Hours Per Day to Spend

question 5

Multiple Choice

Robinson Crusoe has exactly 12 hours per day to spend gathering coconuts or catching fish.He can catch 3 fish per hour or he can pick 12 coconuts per hour.His utility function is U(F, C) = FC, where F is his consumption of fish and C is his consumption of coconuts.If he allocates his time in the best possible way between catching fish and picking coconuts, his consumption will be the same as it would be if he could buy fish and coconuts in a competitive market where the price of coconuts is $1, his income is

• A)$144 and the price of fish is $4.
• B)$144 and the price of fish is $.33.
• C)$36 and the price of fish is $3.
• D)$180 and the price of fish is $3.
• E)$90 and the price of fish is $.33.

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Definitions:

Managerial Accounting Reports

Managerial accounting reports provide detailed financial and operational information to managers, aiding in decision-making processes.

Special-Purpose

Designed or used for a specific reason or task, often referring to equipment, vehicles, or financial instruments tailored for particular needs.

Macro-Reports

Comprehensive reports that provide an overview of broad economic or financial trends and analyses, often used in strategic planning and decision-making.

Managerial Accounting

The practice of identifying, measuring, analyzing, interpreting, and communicating financial information to managers for the pursuit of an organization's goals.