NAME: 7. Complete your diagram in part 2: Add the indifference curve(s) and indicate Smokey's optimum choice of X, and X2 . Label everything. 8. At Smokey's utility-maximizing choice of X, and X2, calculate the marginal utility of Rangerbars. 9. Calculate Smokey's MRS at his utility-maximizing point. WHY is it this value? (Think about this one ! ) 10. Calculate Smokey's utility (total utility) from his consumption of Rangerbars and EnerJuice. NAME: 5. Write out the correct Lagrange function for Smokey to "maximize utility subject to a budget constraint." Max ! = Solve the Lagrange function for Smokey's utility-maximizing consumption of Rangerbars (X,) and EnerJuice (X2). Show all the steps in order. Smokey's (constrained) utility maximizing quantity of X, is and of X2 is Assignment Mod#4 NAME: Smokey is a park ranger who really enjoys the great outdoors. On his days off, Smokey hikes over the mountain and through the woods to his grandmother's remote backcountry cabin. ing, Smokey gets hungry and thirsty, so he eats high-energy Rangerbars and drinks the energy drink, EnerJuice. Rangerbars cost $3 per bar and EnerJuice costs $3 a bottle. Smokey limits his hiking budget to $144 per month. Smokey obtains utility from consuming Rangerbars and EnerJuice. His utility function is: U(X, , X2 ) = X, 1/3X, 213 where: X1 = Rangerbars X2 = EnerJuice Write out Smokey's budget constraint. 2. Illustrate the budget line. Label everything, and indicate the values of the axis intercepts. 3. Calculate the slope of the budget line. What mathematical "functional form" is Smokey's utility function