An individuals utility function is given by where x 1 is the amount of leisure measured in
Question:
An individual’s utility function is given by
where x1 is the amount of leisure measured in hours per week and x2 is earned income measured in dollars per week. Find the values of x1 and x2 which maximise U. What is the corresponding hourly rate of pay?
Transcribed Image Text:
U = 260x, + 310x, + 5x,x2 – 10x; – x
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