You have five hours left to study for two exams tomorrow. The relationship between hours of study and test scores is as follows:
Economics Hours Score150265375480585
Sociology HoursScore17528539049355Use the rule for determining optimal purchases to allocate your time, where each point is one “util” of utility.
What will be an ideal response?
Time is money in this example, so you want the most marginal utility per hour spent. The first hour goes to sociology, which yields MU = 75; hour 2 goes to economics for MU = 50. Hour 3 goes to economics, where MU = 15, and hours 4 and 5 are split between economics and sociology, each worth MU = 10. Three hours of additional study for economics yields a 75, and two hours toward sociology yields an 85.
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