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Suppose Jeffrey's utility depends on the amount of time spent watching You Tube videos (Y) and theamount of time playing video games (V), and his utility function is equal to
U(Y,V) = (3Y^0.2)(V^0.8)
Suppose that Jeffrey has 15 hours of free time to spend on these two activities each day and his goal is tomaximize his utility.
(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) What is the optimal amount of time spent watching You Tube videos (Y) and playing video games(V) each day for Jeffrey?
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