a)  Joan's utility function can roughly be estimated as :

U = 60Q₁^3/4 Q₂^2/3

She chooses from two composite commodities Q₁ and Q₂ whose prices per unit are kshs 20 and Kshs 15 respectively. He has Kshs 6000 to spend on the two commodities.  Determine the amount of each commodity that he should buy so as to maximize her utility.

b) Joan would like to minimise her expenditure subject to her enjoying 480 utils of   utility. Determine the amount of Q₁ and Q₂ she should buy so as to achieve her objective.

Posted Date: 3/8/2013 5:34:09 AM | Location : United States

Ask an Expert

Related Discussions:- Determine the amount of composite commodities, Assignment Help, Ask Question on Determine the amount of composite commodities, Get Answer, Expert's Help, Determine the amount of composite commodities Discussions

Write discussion on Determine the amount of composite commodities
Your posts are moderated

Write your message here..

Related Questions

describe the relationship of the demand curve , The definition of a price ... The definition of a price maker is a "firm with some power to set the price because the demand curve for its output slopes downward", which in effect, means those firms with a down

Environmental scan and swot analysis, Environmental Scan SWOT analysis:... Environmental Scan SWOT analysis: SWOT analysis will help to describe about the strengths, weakness, opportunities as well as threats. This is the strategic planning method

Dblockelements., IS Mn3O4 basic or amphoteric. IS Mn3O4 basic or amphoteric.

Problem Solving, Regardless of the market structure, oligopolist and the mo... Regardless of the market structure, oligopolist and the monopolist maximize their TR when MR=0. Do you agree?

What do you meant by deficit, Q. What do you meant by Deficit? Deficit:... Q. What do you meant by Deficit? Deficit: When a business, government or household spends more in a given period of time than they generate in income, they suffer a deficit. A

Game theory, The following represents the potential outcomes of your first ... The following represents the potential outcomes of your first salary negotiation after graduation: Assuming this is a sequential move game with the employer moving first, indicate

Consumer behavior, problem solving problem solving

Purchasing power parity, Purchasing power parity: When PPP holds, the ... Purchasing power parity: When PPP holds, the domestic currency has the same purchasing power at home and in any other country. PPP also implies that a foreign currency will de

Consumer surplus, consumer choice involving risk consumer choice involving risk

Brief overview on signs and symptoms, Project requirements: Refer to Table... Project requirements: Refer to Table and answer the following questions for EACH organism listed above. Word requirements are outlined for each question - this represents a minim