Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Robinson has a labor endowment of 80 units of labor and a utility function u(x,y) = min { 2x, 5y }. The production of good

Robinson has a labor endowment of 80 units of labor and a utility function u(x,y) = min { 2x, 5y }. The production of good x is x = 2(Lx)0.5 and for y it is y = 4(Ly)0.5. For Robinson, the optimal amount of good x to produce is _____ units.

A: 17.5 B: 15.5 C:12.1 D:10.1

dont answer by pen paper

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Microeconomics Principles, Problems and Policies

Authors: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn

20th edition

978-0077660819, 77660811, 978-1259450242

More Books

Students also viewed these Economics questions