Question: 1) Joe has a utility function of U = B .6 P .4 where B = the number of burgers consumed and P = number

1) Joe has a utility function of

U = B^.6P^.4

where B = the number of burgers consumed and P = number of pizzas consumed.

The price of a slice of pizza is $2 while the burger is $4.

Calculate the utility maximizing quantity of pizza and burgers that joe will buy if he has an income of$200. Show all the steps in your calculations. You need to start your calculations from the utility maximizing condition (MRT=MTS) to get full credit. (10 points)

2) The firm's production function is Y = 3K^.5L^.5

Calculate the marginal product of K (using calculus) if K =340 and L = 420 ( 5 points)

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