Question

Suppose that Harry drinks one cup of coffee with his preferred three packs of creamer every day for seven days. What is his utility for that week

Answer 1

Answer:

21

Explanation:

The computation of the utility for that week is as follows:

Given that

There are three packs

Also it is for seven days

u(x,y) = min(3x,y)

C = 1

x = 1

y = 3

So,

u = min(3,3)

= 3

For 7 days it would be

= 7 × 3

= 21

Hence, the utility for that week is 21