Question: format this better; If p1 = 2, p2 = 5, and m = 25, we can substitute these values into the expressions derived in step
format this better; If p1 = 2, p2 = 5, and m = 25, we can substitute these values into the expressions derived in step 2 to find the optimal amounts of goods: x1* = 2p1(m / (2p12 + 5p22)) = 2(2)(25) / (2(2)2 + 5(5)2) = 100 / (8 + 125) = 100 / 133 0.752 x2* = 5p2(m / (2p12 + 5p22)) = 5(5)(25) / (2(2)2 + 5(5)2) = 625 / (8 + 125) = 625
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
