Find the marginal utilities, Microeconomics

An individual derives utility from consuming goods X and Y according to the following estimated utility function

U = 12X2/3 Y ¼      

X and Y are quantities (units) of the two goods

The individual has ksh 2400 to spend on goods X and Y whose prices per unit are ksh 6 and Ksh 12 respectively,

a) Find the individual's marginal utilities with respect to both goods

b) Determine the quantities of each commodity he/she should buy so as to maximize his utility       

c) His/her maximum attainable utility level

Posted Date: 3/8/2013 5:29:32 AM | Location : United States

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