Question
Nate enjoys skiing and curling during winter times. His utility function of the two sports is represented by a nice smooth utility function: ( 1
Nate enjoys skiing and curling during winter times. His utility function of the two sports is represented by a nice smooth utility function:
(1,2)=(11/2+21/2)2
where 1 is the amount of time he spends on curling and 2 is the amount of time he spends on skiing.
A new resort has opened and offers both sports. The price of curling is $10 per hour and the price of skiing is $30 per hour. Sean has a budget of $70 to spend on the two sports. What is Nate's optimal choice?
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Applied Regression Analysis And Other Multivariable Methods
Authors: David G. Kleinbaum, Lawrence L. Kupper, Azhar Nizam, Eli S. Rosenberg
5th Edition
1285051084, 978-1285963754, 128596375X, 978-1285051086
