Question: 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)=

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)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

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

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 Economics Questions!