Cindy has $70 a month to spend on golf and tennis. The price of an hour of golf is $10, and the price of an hour of tennis is $5. If Cindy equalizes her marginal utilities from golf and from tennis, is she maximizing her utility?

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Answer

No; Cindy can increase her total utility by spending more time golfing and less time playing tennis.

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Yes; Cindy can increase her total utility only if the price of golf falls.

Answer

Yes; Cindy is maximizing her total utility.

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No; Cindy can increase her total utility by spending less time golfing and more time playing tennis.

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No; Cindy can increase her total utility by spending more time golfing and more tie playing tennis.

Crowdly

Cindy has $70 a month to spend on golf and tennis. The price of an hour of golf ...

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