Nadia likes spare ribs, R, and fried chicken, C. Her utility function is U(R,C)=50R^2C Her weekly income is $360, which she spends on only ribs and chicken. Her marginal utilities are MUR = 100RC and MUC= 50R^2 and her budget constraint is 360= 40.00R+20.00C If she spends $40.00 for a slab of ribs and $20.00 for a chicken, what is her optimal consumption bundle? Nadia's optimal value of ribs is R equals 6 units and her optimal value of chicken is C equals 6 Units

Suppose the price of chicken increases to $80.00 How does her optimal consumption of chicken and ribs change?

Nadia's optimal value of ribs is R= ____ units ?   and her optimal value of chicken is C= ____units ?

Answer rating: 100% (QA)

Answer UCRIC50R C M360 MUR 100 R... View the full answer