Respuesta :
Answer:
The correct answer is option A.
Explanation:
Sharon in consuming two goods X and Y.
The price of X is $2 and that of Y is $1.
The marginal utility derived from consuming X is 60 utils and from consuming Y is 30 utils.
For profit-maximization the ratio of marginal utility and price should be equal for both goods or the marginal utility of money spent on both goods should be equal.
The ratio for good X
= [tex]\frac{MUx}{Px}[/tex]
= [tex]\frac{60}{2}[/tex]
= 30
The ratio for good Y
= [tex]\frac{MUy}{Py}[/tex]
= [tex]\frac{30}{1}[/tex]
= 30
Since the ratio is same for both the goods it implies that Sharon is maximizing her total utility.
