Consider The Utility Function Of Charles Where U Total Utility Of Charles Hours Of Video Games That Charles Consum 1 (224.11 KiB) Viewed 36 times
Consider The Utility Function Of Charles Where U Total Utility Of Charles Hours Of Video Games That Charles Consum 2 (315.31 KiB) Viewed 36 times
Consider the utility function of Charles: Where: U = total utility of Charles = hours of video games that Charles consumes and U = e¹² (6v - 9) Sal MU, b) Stationary points are those where MU, function. Where: MU, = the marginal utility of video game consumption, calculated as the change in total utility due to a unit change in video game consumption (measured in hours). du a) Calculate MU, dv [Hint: use the product rule of differentiation and then simplify] www du dv du dv S (3 marks) 0. Find the stationary points of Charles' utility (2 marks)
c) Calculate the second derivative of Charles' utility function. (2 marks) d) Using the second derivative function you derived in part (c) above, what is the value of the second derivative if Charles restricts his video game consumption to 2 hours (1-2)? (Give your answer to 2 decimal places.) (3 marks)
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