Question: Given utility function u(x,y) = xy/(x+y), and the budget constraint 4x+y = 27, what is the optimal value of x and y? Solve this using

Given utility function u(x,y) = xy/(x+y), and the budget constraint 4x+y = 27, what is the optimal value of x and y? Solve this using the MRS=MRT method only.

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 Economics Questions!

Q:

A consumer has a utility function equal to U = xy and an exogenous budget constraint equal to 20. Denote the prices of x and y as Px and Py, and let Px 1 and Py = 2. Write the Lagrangean that...

Q:

2 a) Given utility function U (C; R) = min (C; 2R); daily endowment of time 24h, price and wage pc= w = 1; nd optimal choice of C; relaxation time R and labor supply L. (three numbers, use secrets of...

Q:

2 a) Given utility function U (C; R) = min (C; 2R); daily endowment of time 24h, price and wage pc= w = 1; nd optimal choice of C; relaxation time R and labor supply L. (three numbers, use secrets of...

Q:

Utility Function: U = ln (x) + ln (z) Budget Constraint: 120 = 2x + 3z (a) Find the optimal values of x and z (b) Explain in words the idea of a compensating variation for the case where the budget...

Q:

n December 31, 2018, ABC Partnership's Statement of Financial Positions shows that A, B and C have capital balances of P500,000, P300,000 and P200,000 with profit or loss ratio of 1:3:6. On January...

Q:

Household preferences questions Using data from household surveys, you have determined that the 'typical' household's preferences are represented by the utility function, U = (x + 36)y , where x...

Q:

Given utility function xy/(x+y) = u(x,y), and the budget constraint 4x+y=27 Solve for the optimal value of x and y using MRS = MRT method

Q:

Given utility function xy/(x+y) = u(x,y), and the budget constraint 4x+y=27 Solve for the optimal value of x and y using MRS = MRT method

Q:

Eco nomics Human lCapital Model: Fieinterpretthe human capital growth model as follows: Suppose there are two groups of people in a country, the lowskilled and the highskilled, where the lowskilled...

Q:

All the questions Exercise #1. A firm produces output using the technology y = 7 1.000 where capital, K, is measured in machine-hours, labor, L, is measured in person-hours, and y denotes the yearly...

Q:

A student strained her knee in an intramural volleyball game, and her doctor has prescribedan anti-inflammatory drug to reduce the swelling. The student takes two 220 mg tablets every 8 hours for 10...

Q:

Suppose the European demand for a U.S. machine is given by the following equation: q = 240,000/p Here q is the quantity of U.S. machines bought by the Europeans and p is the price, in euros, of the...

Q:

Find the limit ( if it exists ) . ( If an answer does not exist, enter DNE. ) lim x 4 f ( x ) , where f ( x ) = x 2 + 5 , x 4 4 , x = 4

Q:

Find the roots. z^2 =12i z^4 =25i

Q:

14.Which is the impact of the Globalization into the business environment?

Q:

A: Correct the following sentences : - While Ahmed walked in the street, he was seeing Naji. - The teacher entered the class while the students talked loudly.

Q:

1. Calculate the following: (Stote the otomic moss of eoch atom you are using for eoch solution) (a) the percent composition of ammonia, NH, (b) the percent composition af photographic "hypo,"...

Q:

You expect to be paid 1,000,000 euros in 3 months, how do you hedge?

Q:

Among a group of 5 8 programmers, who know either Java or Python or both, 1 5 only know Java and 1 3 only know Python. What is the probability of randomly choosing a programmer who knows both...

Q:

12. Think of a situation where you felt particularly powerless. It must be a real event that you remember relatively well. Try to think back. What was it you imagined just before you felt powerless...

Q:

13. Try to imagine how you would feel if you had tackled the problem, the con-flict, the challenge, etc., that made you powerless in task 12, for example upstairs, confident, confident, calm,...

Q:

15. Ask yourself the following questions: What do you want to remember from your everyday experiences? These are the experiences that fill most of your life. They may take 9099% of your time. What do...