Question

using the given information what will be the optimal production bundle? income=$10utility function; xy Px=Py=1

using the given information what will be the optimal production bundle? income=$10utility function; xy Px=Py=1

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Given the following utility function and budget contraints: U(X,Y) = XY I = Px (X) +...
Given the following utility function and budget contraints: U(X,Y) = XY I = Px (X) + Py(Y) and given that: Py = 10 , Px=12 and I = 360 Fill in the blanks in the following table (round to two decimal places): Part 1:     What is the Value of Qx? Part 2:     What is the Value of Qy? Part 3:     What is the Optimal level of utility?
(x,y)=ln (x^2+16)+y. Px=$4 Py= 8 m=$64 a.find the optimal bundle b. find good y income elasticity...
(x,y)=ln (x^2+16)+y. Px=$4 Py= 8 m=$64 a.find the optimal bundle b. find good y income elasticity when income rises to $96
(x,y)=ln (x^2+16)+y. Px=$4 Py= 8 m=$64 a.find the optimal bundle b. find good y income elasticity...
(x,y)=ln (x^2+16)+y. Px=$4 Py= 8 m=$64 a.find the optimal bundle b. find good y income elasticity when income rises to $96
Suppose a consumer has the utility function U (x, y) = xy + x + y....
Suppose a consumer has the utility function U (x, y) = xy + x + y. Recall that for this function the marginal utilities are given by MUx(x,y) = y+1 and MUy(x,y) = x+1. (a) What is the marginal rate of substitution MRSxy? (b)If the prices for the goods are px =$2 and py =$4,and if the income of the consumer is M = $18, then what is the consumer’s optimal affordable bundle? (c) What if instead the prices are...
Let income be I = $90, Px = $2, Py = $1, and utility U =...
Let income be I = $90, Px = $2, Py = $1, and utility U = 4X½Y. a.[12] Write down and simplify the two conditions required for utility maximization. b.[6] Compute the optimal consumption bundle for the consumer. What is the level of utility at the optimum?
Consider the utility function U(x,y) = xy Income is I=400, and prices are initially px =10...
Consider the utility function U(x,y) = xy Income is I=400, and prices are initially px =10 and py =10. (a) Find the optimal consumption choices of x and y. (b) The price of x changes, to px =40, while the price of y remains the same. What are the new optimal consumption choices for x and y? (c) What is the substitution effect? (d) What is the income effect?
Homework Assignment 5 1. U = XY where MRS = Y/X; I = 1500, Px =...
Homework Assignment 5 1. U = XY where MRS = Y/X; I = 1500, Px = Py = 15, A. Derive optimal consumption bundle. B. If Px increases to be $30, derive the new optimal consumption bundle C. Using the results from A and B, derive the individual demand for good X assuming the demand is linear. 2. Assuming the market has two consumers for a very special GPU and their individual demands are given below Consumer A: P =...
Assume that Sam has following utility function: U(x,y) = 2√x+y MRS=(x)^-1/2, px = 1/5, py =...
Assume that Sam has following utility function: U(x,y) = 2√x+y MRS=(x)^-1/2, px = 1/5, py = 1 and her income I = 10. price increase for the good x from px = 1/5 to p0x = 1/2. (a) Consider a price increase for the good x from px = 1/5 to p0x = 1/2. Find new optimal bundle under new price using a graph that shows the change in budget set and the change in optimal bundle when the price...
Utility cobb douglas function = 2X.5Y2 MUx =Y2/X.5 MUy =4X.5Y Px=1 PY=2 and M=100 1.Graph the...
Utility cobb douglas function = 2X.5Y2 MUx =Y2/X.5 MUy =4X.5Y Px=1 PY=2 and M=100 1.Graph the consumer optimization problem in(X,Y) space. Clealy label the precise location of the optimal bundle, the budget constraintm, and the shape of the furthest obtainable indifference curve. 2.Assume Px increase to 2. What is the total effect of the price change in terms of X and Y. 3. What is the precise location of the bundle used to decompose the substitution and income effect? 4.What...
Suppose that your utility function is 7x+3y. The market prices are px=20 and py=14. Assuming that...
Suppose that your utility function is 7x+3y. The market prices are px=20 and py=14. Assuming that your wealth is $10,000, calculate the utility-maximizing commodity bundle.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT