Question: 'l 1 Given the utility function U = x5); and the constriant 2x + y = 400. 3. Write the Langrangian function. b. Find the

'l 1 Given the utility function U = x5); and the constriant 2x + y = 400. 3. Write the Langrangian function. b. Find the optimal levels of purchase 1" and y'. c. Show that the budget line is tangent to Indifference curve at optimal value U

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 Mathematics Questions!

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...

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...

Exercise #1. Andy consumes two goods: food (measured in dollars) and other things (also measured in dollars). Let x1 be the amount that Andy spends on food in a given month and let *2 be the amount...

Aswer all ques Application Case 3.7 Dallas Cowboys Score Big with Tableau and Teknion Founded in 1960, the Dallas Cowboys are a professional American football team headquartered in Irving, Texas. The...

He lp m eo u tpl e a se : Questions.,, 4. Which of the following will not shift either the demand or supply curve? 3. Changes in production costs b. Changes in consumer tastes c. Changes in the price...

QUESTION 3 You won $200M {$200,000,000} playing the lottery. Two charities have approached you for a donation. You summoned the directors of the two charities and informed them that they will play...

Liquidity insurance model (Diamond and Dybvig. 1983) 1. Consider an cconomy without a financial market and banks. Consumers can only hold cash or finance two-period illiquid investment projects with...

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...

give all Problem 1. Demand Bengt's utility function is U(x1, x2)= x1 + ln x2 x1 - stamps x2 - beer Bengts budget p1 x1 + p2 x2 = m p1 - price of stamps p2 - price of beer m - Bengt's budget a) What...

A piston cylinder device contains 0.01 m3 of nitrogen at 500 kPa and 30oC. Determine the change in stored energy if (a) The pressure is doubled at constant temperature. (b) Temperature is increased...

The City of Bingham utilizes a single debt service fund to account for the service of all issues of tax-supported and special assessment long-term debt. As of December 31, 2019, one issue of...

Which of the following is NOT part of the capital budgeting process? A . develop short - term eperating strategies B . perform post - audis C . apply capial rationing. D . Identily and analyze...

On January 1, a corporation issues bonds with a par value of $6,200,000. The bonds are issued at par, mature in 6 years, and pay 8% interest. Interest payments are made semiannually on June 30 and...