- A Consumer S Utility Function Is U In Xy A Find The Values Of X And Y Which Maximise Utility Subject To The Budget 1 (38.73 KiB) Viewed 48 times
A consumer's utility function is U = In(xy^) (a) Find the values of x and y which maximise utility subject to the budget
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A consumer's utility function is U = In(xy^) (a) Find the values of x and y which maximise utility subject to the budget
A consumer's utility function is U = In(xy^) (a) Find the values of x and y which maximise utility subject to the budgetary constraint 8x + 4y = 80. Use the method of substitution or Lagrange to solve this problem. (b) Show that the ratio of marginal utility to price is the same for x and y. (a) x = and y= (Simplify your answers.) (b) The values of the marginal utilities at the optimum are au au ax ду (Give your answers to three decimal places as needed.) The ratio of the marginal utilities and the ratio of the prices are both equal to au/ay au / ax and