Kuhn tucker conditions and utility function, Macroeconomics

1. Kuhn - Tucker Conditions

 Max 2x + 3y

 s.t. pxX + pyY ≤ M. x ≥ 0, y ≥ 0

2. Max (8 + x)(8 + y)

 s.t. pxX + pyY ≤ M. x ≥ 0, y ≥ 0

Utility function

3. U(x, y) = x 1/3 y2/3

4. U(x, y) = 8x1/4y3/4

5.U (x, y) = min[2x, 3y]

Mux= 

Muy=

MRS=

x* (Px, Py, m)=

y* (Px, Py, M)=

Posted Date: 2/15/2013 6:10:57 AM | Location : United States







Related Discussions:- Kuhn tucker conditions and utility function, Assignment Help, Ask Question on Kuhn tucker conditions and utility function, Get Answer, Expert's Help, Kuhn tucker conditions and utility function Discussions

Write discussion on Kuhn tucker conditions and utility function
Your posts are moderated
Related Questions
A firm with two factories, one in Michigan and one in Texas, has decided that it should produce a total of 500 units to maximize profit. The firm is currently producing 200 units i


Select a particular public policy with which you are familiar and discuss two positive and two negative aspects of that policy. b. What goal do you think the policy makers were try

Relate overnight interest rates with interest rates By controlling overnight interest rates, the central bank will affect the interest rates with longer maturity. The reason f

Panzer is a U.S. company.  It originated in the 1970s as a family-owned business that manufactures fine watches. The family continued to build the company by reinvesting profits in

assessment of interest rate in the economy of south africa, unemployment

Why do financial crises occur and why are they so damaging to the economy?

Q. Illustrate diffrent types of interest rates? There are many other interest rates in a society. For instance, you will earn interest when you deposit money in a bank account

The United States postal service report 95% of first class mail within the same city is delivered within two days of the time of mailing. Six letters are randomly sent to different

This paper empirically analyses the effect of oil price shocks on key macroeconomic indicators in the United Kingdom.The aim of the paper is to establish a relationship between oil