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You are organizing a group of people to visit a state park for a day trip. You have to rent cars and hire drivers for the transportation. If you rent C cars, and hire D drivers, your utility function is U=min(C, D), because you have to find one driver for one car. Suppose car rental price is $50 per day, and driver’s salary is $100 per day. Your budget is $1200. Draw the indifference curves and budget constraint. How many cars should you rent and how many drivers do you hire to maximize your utility?

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91421851

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