Question

suppose also that her utility function is given by the equation u(m,p)=2m p. what combination of meat and potatoes should she buy to maximize her utility?

Answer 1

To maximize utility, compare the ratio of marginal utility to the price of each good. In this case, use the utility function u(m,p) = 2mp to find the combination of meat and potatoes that maximizes utility.

Step-by-step explanation:

To maximize utility, we need to compare the ratio of the marginal utility to the price of good 1 with the ratio of the marginal utility to the price of good 2. In this case, the utility function is given by u(m,p) = 2mp. Let's assume that m represents the quantity of meat and p represents the quantity of potatoes. To find the combination of meat and potatoes that maximizes utility, we need to find the point where the two ratios are equal.