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1. (40 Points) (Q 4.15 Page 127). Baki likes kofta, K, and falafel, F. His utility function is U = ( K + F) 2
1. (40 Points) (Q 4.15 Page 127). Baki likes kofta, K, and falafel, F. His
utility function is U = (
K +
F)
2
. Baki has a weekly income of 108,
which he spends entirely on kofta and falafel.
(a) If he pays 6 for a falafel meal and 12 on a kofta meal, what is his
optimal consumption bundle?
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Financial Management Of Health Care Organizations
Authors: William N. Zelman, Michael J. McCue, Noah D. Glick, Marci S. Thomas
5th Edition
1119553849, 9781119553847
