Question

(A). Find the maximum of the following utility function with respect to x;

U= x^2 * (120-4x).

The utility function is U(x,y)= sqrt(x) + sqrt(y) . The price of good x is Px and the price of good y is Py. We denote income by M with M > 0. This function is well-defined for x>0 and y>0.

(B). Compute (aU/aX) and (a^2u/ax^2). Is the utility function increasing in x? Is the utility function concave in x?

(C). Write down the maximization problem with respect to x and y.

(D). Write down the Langrangean function.

(E). Write down the first order conditions for this problem with respect to x, y, and (lambda).

a = a symbol that appears to look like a.

Answer 1