Constrained maximization problem

Assignment Help Business Management
Reference no: EM131224524

Luke only consumes strawberries (S) and turnips (T) each week with his $36 income. The price of strawberries is PS = $3/basket, while the price of turnips is PT = $1.50/turnip. Luke's preferences are given by the following utility function

U(S,T) = sqrt(ST)

(a) Set up the Lagrangian equation for this constrained maximization problem.

(b) What are the 3 first order conditions (FOC) of optimization from the Lagrangian?

(c) Find Luke's optimal consumption bundle of strawberries and turnips.

Reference no: EM131224524

The macroeconomist as scientist and engineer

Read the article titled - Mankiw, "The Macroeconomist as Scientist and Engineer" ( you can find it online). Please provide a couple paragraph on your thoughts regarding this

Demand in the market for one bedroom apartments

Suppose that there are thousand one bedroom apartments in a small town and that this number is fixed. The table gives the quantity demand in the market for one bedroom apart

What criteria should zachary use to evaluate the projects

What criteria should Zachary use to evaluate the projects? What assumptions should he make? What data and information should he gather and how should he go about gathering the

Using leadership to improve ethical performance

At this point, you should have identified the leader you would like to interview. You should also have already contacted him / her and have scheduled an interview time / dat

Association of employee commitment-organizational support

We conduct research about The Association of Employee Commitment, Organizational Support, Job Satisfaction on Intention to Leave of nurses in Najran, Saudi Arabia I want fro

Statement is an essential component

(a) When defining a project, the scope statement is an essential component. Explain the role of the scope statement and the reasons for the occurrence of scope creep in a pr

Effective presentation

Imagine that you are facilitating a training course at DNA and you have been advised that there will be a group of hearing impaired individuals attending your "Effective P

Creating a sales forecast snapshot

Would you expect that the sales budget may reflect different volumes and prices than was forecasted in the sales forecast?  What would be be doing differently during the sal

Reviews

Write a Review

 
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd