Central high school has preferences

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Suppose that Central High School has preferences that can be represented by the utilityfunctionU(C,X) =CX2. Let us try to determine how the various plans described inthe previous problem will affect the amount that C.H.S. spends on computers.

(a) If the state adopts none of the new plans, ?nd the expenditure on computers thatmaximizes the district's utility subject to its budget constraint. The Budget is 60'000.

The Answer is 20'000 but how do I get C*= 1/3 x 60'000 = 20'000?

Why 1/3?

Reference no: EM131334745

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