(Answered) 1 consider marys utility function u 10c05t05 where c is

Economics

1. Consider Mary's utility function: U = 10C^0.5T^0.5, where C is the quantity of coffee and T is the quantity of tea Mary consumes. For each additional coffee Mary consumes, she receives additional utility equal to 5C^-0.5T^0.5 and for each additional tea she consumes, she receives additional utility equal to 5C^0.5T^-0.5. If the price per coffee is $10 and the price per tea is $5 and Mary has a weekly income of $500, find the bundle of coffee and tea that maximizes Mary's utility.

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