Question: Suppose there are two potential cities, Eugene and Springfield. Assume that indirect utility in Eugene can be written as: E(LE)= LE +10 where E is

Suppose there are two potential cities, Eugene and Springfield. Assume that indirect utility in Eugene can be written as:
E(LE)= LE +10
where E is indirect utility of living in Eugene and LE is population in Eugene.
Assume that indirect utility in Springfield can be written as:
S(LS)= LS + 30
where S is indirect utility of living in Eugene and LS is population in Eugene. There are 100 individuals who live in either of the two areas.

What population in Eugene maximizes total utility across the two cities?

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Eugene judin yooJEEN may be a city within the US state of Oregon within the geographic area its at the southern end of the Willamette Valley near the confluence of the McKenzie and Willamette rivers a... View full answer

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