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On Bilbos quest, the rest of the group decided that he was holding them back, so one morning, they left him stranded in the Mirkwook
On Bilbos quest, the rest of the group decided that he was holding them back, so one morning, they left him stranded in the Mirkwook Forest. Bilbo is able to work 100 hours a week. He can split this time between gathering magical stones and gathering berries. His production functions are: Berries= sqrt(Berries, Labor) Stones = L(sub Stones) And his utility function is: - = 9 ln (B) + 8 ln (S)
b. What will the optimal levels of Berries and Stones be?
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