Find the optimal bundle for the following utility functions and for budget line (P1X1+P2X2=m)

a) U(X1,X2)=X1X2

b) U(X1,X2)=X1^2X2^3

c) U(X1,X2)=X1^2+2X2

d)U(X1,X2)= ln (x1^3X2^4)

e) U(X1,X2)= 2X1+X2

f) U(X1,X2)= min (2X1,X2)

Answer rating: 100% (QA)

To find the optimal bundle for a given utility function and budget constraint we need to maximize th... View the full answer