Suppose that food costs 1 a unit for the rest 5 units


Julies utility function from food and clothing is U (F;C) = FC; here income, to be spent on food and clothing, is $12. Suppose that food costs $1 a unit for the rest 5 units bought; every additional unit of food (beyond 5) costs $2. Clothing costs $2 per unit always. Find Julies optimal basket of consumption.

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Business Management: Suppose that food costs 1 a unit for the rest 5 units
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