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What is the total utility at the optimum

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Reference no: EM133081312

Mr Banda faces the following utility function from consuming nshima [X] and Rice [Y] ?? = 3???? 1 3 Mr Banda's budget allocation for nshima and rice is K240. The price of nshima is K60 per Kg while that of Rice is K20 per Kg.

A. How much nshima and rice should Mr. Banda consume to maximize his utility?

B. What is the total utility at the optimum?

C. What is the Lagrange multiplier?

D. What will be the increase in utility when the budget allocation is increased to K241?

Reference no: EM133081312

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