Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Marius has the following utility function: U (X, Y) = 20X + 80 Y - X 2 -2Y 2 , X being the CD number,

Marius has the following utility function:

U (X, Y) = 20X + 80 Y - X2 -2Y2, X being the CD number, at 100 kr per piece, and Y is DVD number at 150 kr cost per piece. He wants to use 4500 kr for both CD and DVD. How much will he buy from each of them, given that he wants to maximise his usefulness?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Microeconomics

Authors: Douglas Bernheim, Michael Whinston

2nd edition

73375853, 978-0073375854

More Books

Students also viewed these Economics questions

Question

3. Provide unexpected, spontaneous, and genuine praise.

Answered: 1 week ago