Card 8 / 59: Suppose Frank can either hunt for birds (b) or forage for wild berries (w) on his isolated island property. He can catch two birds in an hour or gather three pounds of berries. He only has 12 hours a week to devote to these activities. His utility function for birds and berries is u(w,b) = bw^(0.5). What is the expression for b when the marginal rate of substitution of birds for berries is equal to the marginal rate of transformation of birds for berries?
A) (3/4)w
B) -(3/4)w
C) (4/3)w
D) -(4/3)w

Keyboard Shortcuts