Question: a. How many hours does Max windsurf and how many hours does he snorkel to maximize his utility? b. If Max spent a dollar more

a. How many hours does Max windsurf and how many hours does he snorkel to maximize his utility?
b. If Max spent a dollar more on windsurfing and a dollar less on snorkeling than in part (a), by how much would his total utility change?
c. If Max spent a dollar less on windsurfing and a dollar more on snorkeling than in part (a), by how much would his total utility change?
Max enjoys windsurfing and snorkeling. Max has $35 a day to spend, and he can spend as much time as he likes on his leisure pursuits. The price of renting equipment for windsurfing is $10 an hour and for snorkeling is $5 an hour. The table shows the total utility Max gets from each activity.

Total utility from windsurfing 120 220 300 360 396 412 422 Total utility from snorkeling 40 76 106 128 140 150 158 Hours per day 6

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a To maximize his utility Max windsurfs for 3 hours and snorkels for 1 hour Max uses his 35 so that all of the 35 is spent and so that the marginal ut... View full answer

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