Question: 4.9 Diogo has a utility function U(B, Z) = ABZ, where A, , and are constants, B is burritos, and Z is pizzas. If

4.9 Diogo has a utility function U(B, Z) = ABαZβ, where A, α, and β are constants, B is burritos, and Z is pizzas. If the price of burritos, pB, is $2 and the price of pizzas, pZ, is $1, and Y is $100, what is Diogo’s optimal bundle? C

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Intermediate Microeconomics Questions!

Diogo has a utility function U(B, Z) = AB Z , where A, , and are constants, B is burritos, and Z is pizzas. If the price of burritos, p B , is $2 and the price of pizzas, p Z , is $1, and Y is...

PART I: MULTIPLE-CHOICE QUESTIONS Questions 1 and 2 refer to a consumer whose equilibrium happens when she maximizes her utility subject to her budget constraint. The consumer loves fast food decides...

help me pliz Problem 4 (23 points) Firm X has the following production function (K, I) = (1 + K2/3). 1. (6 points) Find the marginal product of labor and capital and the marginal rate of technical...

Lisa eats pizzas and burritos. Her utility function is U ( B , Z ) = B 0 . 6 Z 0 . 4 , where Z is the number of pizzas consumed and B is the number of burritos consumed. The price of burrito is PB...

microeconomics Suppose your utility for having a net worth of m is (m) = In(m). Your net worth is $450,000. You are thinking about opening a Starbucks franchise, which will require an initial...

Please answer all the required questions in detail I hope the answer is not copy-paste I hope that the answer will be according to the concepts in the chapter 3 The following article summarizes the...

I have provided an example and mark scheme of how to answer this question. I need help answering the set of questions that don't come with the mark scheme as I'm hoping the same methods can be...

Can you please help me answer two questions based on the readings below. 1 How would you contrast the mainstream economics view of consumer behavior in 9.3, with the demand curve in general, and also...

fi 4.3. Risk premium: A businesswoman runs a firm worth CHF 100,000. She faces some risk of having a fire that would reduce her net worth according to the following three states, i = 1,2,3, each with...

To what extent can workers work during breaks and lunch time without being paid?

Portillo, Inc. is a manufacturer of small household appliances and cooking utensils. Working with Johanna Portillo, the CEO of the firm, her executive team has developed a scoring model to analyze...

Kaci Company, a manufacturer, presicts sales of 1 1 , 2 0 0 units in January, 1 0 , 4 0 0 units in February, 1 4 , 4 0 0 units in March, and 1 5 . 8 0 0 units in Aprl. The company wants each montt's...

Draw all tertiary amines with molecular formula C 5 H 13 N, and provide a name for each isomer. Are any of these compounds chiral?