Maximize bills utility subject to the budget constraint

Reference no: EM13178817

Bill gets utility (satisfaction) from two goods, x and y, according to the utility function u(x,y) = ln(x) +ln(y). While Bill would like to consume as much as possible he is limited by his income, which is 100 dollars. Good x costs $2 per unit and good y costs $4 per unit, so his budget constraint is 100 = 2x + 4y. maximize Bill's utility subject to the budget constraint using the Lagrangean method.

Reference no: EM13178817

Questions Cloud

State the iupac name of the expected product : Write the IUPAC name of the expected product(s) for the oxidation of each of the following compounds. A. 2-pentanol

State one mole of monoatomic ideal gas expands adiabatically : One mole of monoatomic ideal gas expands adiabatically at initial temperature T against a constant external pressure of 1 atm. from one litre to two litre.

Powers given explicitly to the national government : These are powers given explicitly to the national government and listed in the Constitution:

State scratching the surface on enthalpy : Determine qp for this reaction using deltaH = qp *Just scratching the surface on enthalpy, the help in understanding the process in full is much appreciated

Maximize bills utility subject to the budget constraint : Bill gets utility (satisfaction) from two goods, x and y, according to the utility function u(x,y) = ln(x) +ln(y). While Bill would like to consume as much as possible he is limited by his income, which is 100 dollars.

Motets and madrigals : Which of the following are found in the Renaissance motet or Renaissance madrigal?

Explain genetically modified foods : A great deal of expensive research is invested in developing technologies to deliver productive agriculture. Horticultural efforts to breed hybrid crops are seen as far back as history can observe, and there have been efforts to domesticate improv..

Emergence of oratorio in the 18th century : What did Lent and Advent have to do with the emergence of oratorio in the 18th Century? Describe the differences in opera and oratorio.

Calculate the optimum production plan : Calculate the optimum production plan the firm should follow next year given the above constraints and calculate the maximum amount it would be worth the firm paying per hour, to rent an additional specialist machine.

User Account

All Pages