Answered step by step
Verified Expert Solution
Question
1 Approved Answer
please help and show work 7. [12] Diego has exactly 10 hours per day to spend making memes or working on his independent film projects.
please help and show work
7. [12] Diego has exactly 10 hours per day to spend making memes or working on his independent film projects. He can produce five YouTwo?\" videos per hour or he can produce twenty quality memes per hour. His utility function is U(V,M) = VMZ, where V is his consumption of videos and M is his consumption of memes. a. [4] if Diego is completely isolated from markets {his internet is not working), what will his optimal levels of V and M be? h. [8] if Diego gains access to the worldwideweb and he can buy memes and videos in a competitive market where the price of videos is $1 i. [4] What will the price of memes be and what would his income be at market prices? ii. [4] If Diego specializes in only making memes, is it possible for him to buy and sell the two goods in order to achieve his optimal cansumption bundle? Explain your reasoningStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started