Question
N4 Diego's utility function is U (q1, q2) = q0.751 q0.252 , where q1 is chocolate candy and q2 is slicesof pie. If the price
N4
Diego's utility function is U (q1, q2) = q0.751 q0.252 , where q1 is chocolate candy and q2 is slicesof pie. If the price of a chocolate bar, p1, is $1, the price of a slice of pie, p2, is $2, and Y is$80, what is Diego's optimal bundle? Consider that:
M U1 = U/q1= 0.75 q0.251 q0.252
M U2 = U/q2= 0.25 q0.751 q0.752
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Crafting and Executing Strategy The Quest for Competitive Advantage
Authors: Arthur Thompson, Margaret Peteraf, John Gamble, A. J. Strickland III
19th edition
78029503, 978-0078029509
