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Batu consumers only cookies and books. At his current consumption bundle, his marginal utility from books is 10 and from cookies is 5. Each book costs 10TL, and each cookies 2TL. Is he maximizing his utility? Explain. If he is not, how can he increase his utility while keeping his total expenditure constant ?

- November 14, 2022 - Edwin Tunner

Batu consumers only cookies and books. At his current consumption bundle, his marginal utility from books is 10 and from cookies is 5. Each book costs 10TL, and each cookies 2TL. Is he maximizing his utility? Explain. If he is not, how can he increase his utility while keeping his total expenditure constant ?

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