Naliaka has the following utility function for her mrenda (X) and likhubi (Y) consumption U =...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Naliaka has the following utility function for her mrenda (X) and likhubi (Y) consumption U = 4X¹/3 Y2/3 Supposing that the bunch prices of mrenda and likhubi are Ksh 20 and Ksh. 40 respectively, and that she has a total of Ksh. 500 to spend on the two inputs: i. Set up the constrained utility maximization problem for Naliaka ii. By applying the First Order Condition, find the critical values of X, X and Y iii. Using Second Order Condition, confirm that the critical values present maximum utility What will be the stationery value of U (15 marks) iv. Naliaka has the following utility function for her mrenda (X) and likhubi (Y) consumption U = 4X¹/3 Y2/3 Supposing that the bunch prices of mrenda and likhubi are Ksh 20 and Ksh. 40 respectively, and that she has a total of Ksh. 500 to spend on the two inputs: i. Set up the constrained utility maximization problem for Naliaka ii. By applying the First Order Condition, find the critical values of X, X and Y iii. Using Second Order Condition, confirm that the critical values present maximum utility What will be the stationery value of U (15 marks) iv.
Expert Answer:
Answer rating: 100% (QA)
i Set up the constrained utility maximization problem for Naliaka Let X be the quantity of mrenda co... View the full answer
Related Book For
Posted Date:
Students also viewed these mathematics questions
-
Jimmy has the following utility function for hot dogs: U(H) = 10H H2, with MUH = 10 2H a) Plot the utility and marginal utility functions on two separate graphs. b) Suppose that Jimmy is allowed to...
-
John has the following utility function that represents his preferences over food (x) and housing (y) (his only two expenses) and marginal utilities: u(1, y) = 1'^y% %3D and marginal utilities: O*,...
-
Maurice has the following utility function: U(X, Y) = 20X + 80Y X2 2Y2 Where X is his consumption of CDs, with a price of $1, and Y is his consumption of movie videos, with a rental price of $2. He...
-
You are appraising a three-year-old, single-tamily residence. The total square footage of the livable area is 2,500. The garage is 500 sq. ft. According to figures obtained from a cost-estimating...
-
Find the time Saturn takes to orbit the sun.
-
You build a beanbag toss game. The game is constructed from a sheet of plywood supported by two boards. The two boards form a right angle and their lengths are 3 feet and 2 feet. a. Find the length x...
-
Use the conservation laws to show that, when the spring in Figure 7.25 expands, the change in the kinetic energy of Earth is negligible and we are therefore justified in using Eq. 7.11. Equation 7.11...
-
Hepworth Credit Corporation is a wholly owned subsidiary of a large manufacturer of computers. Hepworth is in the business of financing computers, software, and other services that the parent...
-
22 22 The atomic number of an element T is 10. T shows similar properties to an element with atomic number 23. 24. A. 14 B. 16 C. 18 d. 20 The electron configurations of elements W, X, Y and Z are...
-
Midwestern Hardware must decide how many snow shovels to order for the coming snow season. Each shovel costs $ 15.00 and is sold for $ 29.95. No inventory is carried from one snow season to the next....
-
Company Ltd furnished the Commissioner General (CG) its statement of estimated tax payable for the year of income 2008 on the 15th December 2007. The statement declared a total estimated taxable...
-
The operational parameter concerned with the number of units completed per unit time (such as per week or per month) is production rate. workforce. overtime. backlog.
-
Operational improvements that reduce lot sizes can dampen the bullwhip effect by decreasing the uncertainty of demand during the lead time. decreasing the amount of fluctuation that can accumulate...
-
What is supply chain management? Will a supply chain always look like a chain?
-
The goal of aggregate planning is to maximize the amount of inventory. satisfy customers in a way that minimizes production. satisfy demand in a way that maximizes profit. maximize the amount of...
-
Actions taken in the course of placing and filling orders that lead to an increase in variability are referred to as incentive obstacles. information processing obstacles. operational obstacles....
-
An asset manager anticipates the receipt of funds in six months, which he will use to purchase a particular stock. The stock he has in mind is currently selling for $39 and pay $1.5 dividend in one...
-
Pedro Bourbone is the founder and owner of a highly successful small business and, over the past several years, has accumulated a significant amount of personal wealth. His portfolio of stocks and...
-
Jeffrey, who is risk neutral, is thinking about investing in one of two mutually exclusive projects. The data are summarized in the table below: Project A requires an investment of $200 up front....
-
Suppose Table 4.2 (page 89) describes Madeline's preference ranking over slices of cheese pizza and scoops of frozen yogurt. Assume her income is $6 per day, pizza costs $2 per slice, and yogurt...
-
A presidential candidate is concerned that Americans create too much pollution by driving excessively. She proposes issuing a fixed number of tradable driving permits each month. Each permit would be...
-
Explain from a technical viewpoint why it is important to distinguish a method, research, approach, and design. Next, briefly discuss how understanding each term individually in addition to how these...
-
Discuss the importance of validity and research design. Next, choose one type of validity (internal, external, construct, or statistical conclusion) and discuss its relevance to experimental, quasi...
-
Define a sampling strategy.
Study smarter with the SolutionInn App