Business
Business, 28.05.2020 18:02, therealpr1metime45

Bob lives in San Diego and loves to eat desserts. He spends his entire weekly allowance on yogurt and pie. A bowl of yogurt is priced at $1.25, and a piece of pecan pie is priced at $3.75. At his current consumption point, Bob's marginal rate of substitution (MRS) of yogurt for pie is 2. This means that Bob is willing to trade two bowls of yogurt per week for one piece of pie per week.

Does Bob's current bundle maximize his utility—in other words, make him as well off as possible? If not, how should he change it to maximize his utility?

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Bob lives in San Diego and loves to eat desserts. He spends his entire weekly allowance on yogurt an...

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