Sarah's utility function is represented as: U = F0.5C0.5, F is quantity of food and C is quantity of clothing. If Sarah's budget constraint is represented as: 120 = 2F + C, Sarah's optimal bundle of consumption should be Group of answer choicesA.(50F, 50C).

B.(45F, 20C).

C.(40F, 40C).

D.(20F, 60C)

Explanation:

Utility function is given by U=F^0.5C^0.5

Find the MRS which is -MUF / MUC

MUF = dU/dF = 0.5F^-0.5C^0.5

MUC = dU/dC = 0.5F^0.5C^-0.5

Now MRS = -(0.5F^-0.5C^0.5) / (0.5F^0.5C^-0.5)

= -(C^0.5C^0.5)/(F^0.5F^0.5)

= - C/F

From the budget constraint, we have slope = -Price ratios = -coefficient of F / coefficient of C = -2/1 or -2.

At the optimal choice, utility function is tangent to budget line so MRS = slope of budget line

- C/F = -2

C = 2F

Use C = 2F in the budget equation

120 = 2F + 2F

120 = 4F

F = 120/4 = 30 units

Then C = 2F = 2*30 = 60 units

Hence her optimal bundle of consumption should be 30F and 60C

(This is the correct answer. For a generalized results, I have attached the derivation of formulas)

the correct answer would be b, when, queen, calder hall and london.

explanation:

we always capitalize words when a paragraph or sentence is starting, when an important name is used, when a place is being written, or simply when a noun is used, etc. so in this sentence, sentence is starting from 'when', so it will be written in capital letters. secondly, queen is considered to be an important person, so it will also be written in capital letter. next, the name of the town is mentioned, i-e calder hall, which will also be written in capital letters. in the last,   city name is being used, 'london', which will also be written in capital letters. so option b is the most appropriate one.

an important city to the south and the region's capital is c. kiev