Multiple Choice
Mr. Angst has two children, Dick and Jane. Dick is a slow learner and Jane is very bright. If Mr. Angst spends $X per month on Dicks education, Dick will score a total of
points on his SAT tests. If Mr. Angst spends $Y per month on Janes education, she will score a total of 2Y on her SAT tests. Mr. Angst has a utility function U(D, J) = min{D, J}, where D is Dicks SAT score and J is Janes SAT score. To maximize his utility, he will spend
A) equal amounts of money on the two children.
B) 4 times as much money on Dick's education as on Jane's.
C) 4 times as much money on Jane's education as on Dick's.
D) between 1 and 2 times as much money on Dick's education as on Jane's.
E) between 1 and 2 times as much money on Jane's education as on Dick's.
Correct Answer:

Verified
Correct Answer:
Verified
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