Estimate a sixth point to be the optimal consumption point

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Reference no: EM13209407

Consider two goods, Gorillas (G) and Chimpanzees (C). Your utility function for gorillas and chimpanzees is given by U(G,C)=ln(G)+C. Gorillas cost $10 each, and Chimpanzees cost $4 each. You currently have $200 to spend. On a separate piece of paper, graph your budget line. Identify 5 distinct points on the budget line, and calculate the utility at each point. From these points, estimate a sixth point, that you believe to be the optimal consumption point.

Reference no: EM13209407

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