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Julio receives utility from consuming food​ (F) and clothing​ (C) as given by the utility function...

Julio receives utility from consuming food​ (F) and clothing​ (C) as given by the utility function U (F,C) = FC. In​ addition, the price of food is $2per​ unit, the price of clothing is $6 per​ unit, and​ Julio's weekly income is​ $50.

Suppose instead that Julio is consuming a bundle with more food and less clothing than his utility maximizing bundle. Would this marginal rate of substitution of food for clothing be greater than or less than your answer​ above? Explain.

a). If Julio is instead consuming a bundle with more food and less clothing than his utility maximizing​ bundle, then his marginal rate of substitution will be (less than, equal to, greater than) 0.33 because he will be consuming a bundle on the indifference curve that is (to the left of, equal to, to the right of) his satisfaction maximizing bundle.

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