Every week Nasir consumes 17 bowls of rice, which cost $4.75 each, and 42 cups of vegetables, which cost $3.50 each. His marginal utility of bowls of rice at that point is 12.5 and his marginal utility of cups of vegetables is 10.25.
Every week Nasir consumes 17 bowls of rice, which cost $4.75 each,
and 42 cups of vegetables, which cost $3.50 each. His marginal utility of bowls of rice at that point is 12.5 and his marginal utility of cups of vegetables is 10.25.
A. Comment on Nasir’s choice and illustrate on a graph (rice on y axis)
B. If everyone is like Nasir and you sell rice, what are the implications for your business?
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