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VII. Utility Maximization 4. A consumer has the following utility function, U(x1, x2) = x0.2 x 3. = 1. What is the consu
Posted: Mon Apr 18, 2022 9:15 am
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- Vii Utility Maximization 4 A Consumer Has The Following Utility Function U X1 X2 X0 2 X 3 1 What Is The Consu 1 (85.68 KiB) Viewed 28 times
VII. Utility Maximization 4. A consumer has the following utility function, U(x1, x2) = x0.2 x 3. = 1. What is the consumer's marginal utility for xı? How about for xz? 2. Suppose the price of Xi and X2 are equal to 4 and 6, respectively. What is the utility maximizing proportion of Xı and X2 in their consumption ? 3. What is the budget constraint of the consumer given income m? 4. If m = 120 a. How much of each good can they buy if they buy only one good exclusively? b. From 2, how much of each good can they consume?