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Let U(F,C) = F0.5C0.5represents preferences for food (F) and clothing (C), and let q(B,M) = AB0.5M0.5represent a production process where q is output and B
Let U(F,C) = F0.5C0.5represents preferences for food (F) and clothing (C), and let q(B,M) = AB0.5M0.5represent a production process where q is output and B and M represent bricks and mortar, respectively. A is a constant. What will happen is we put A in the utility function (Like this: U(F,C) = AF0.5C0.5)? What will happen if A increases?
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