Question
Questions 1-3 relate to the following maximization problem: maximize z(x,y)=10x^0.5y^0.5 subject to the constraint 10x+5y=40. What is the optimal value of x? Q2. What is
Questions 1-3 relate to the following maximization problem: maximize z(x,y)=10x^0.5y^0.5 subject to the constraint 10x+5y=40. What is the optimal value of x? Q2. What is the optimal value of y? Q3. What is the maximized value of z(x,y)? (Use Google or a scientific calculator for this.)
Questions 4-6 relate to the following consumer utility maximization problem: maximize U(x,y)=x^0.75y^0.25 subject to the budget constraint 10x+5y=40. What is the optimal amount of x in the consumer's bundle? (Note that the 10 in the budget constraint is interpreted as the price of good x, 5 is the price of good y, and 40 is the consumer's income.) Q4. What is the optimal amount of y in the consumer's bundle? Q5. What is the consumer's maximized utility? (Use Google or a scientific calculator for this.)
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