### Quiz 11. Joseph’s utility is given by: \[ U = X^2 + Y^2 \] (Note that this is the equation of a circle with the center at the origin). The marginal utilities are \( MU_x = 2X \) and \( MU_y = 2Y \). Assume that \( P_x = 10 \), \( P_y = 20 \), and \( m = 200 \). Find the optimal amounts of \( X \) and \( Y \). Show your answer on a graph.

Answered: 1. Joseph's utility is given by: U=X² +…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Question

### Quiz 1

1. Joseph’s utility is given by:

\[ U = X^2 + Y^2 \]

(Note that this is the equation of a circle with the center at the origin). The marginal utilities are \( MU_x = 2X \) and \( MU_y = 2Y \). Assume that \( P_x = 10 \), \( P_y = 20 \), and \( m = 200 \). Find the optimal amounts of \( X \) and \( Y \). Show your answer on a graph.

Expert Solution

Step 1

In the study of economics, the term utility can be defined as the total satisfaction or benefit that is received by a consumer from consuming a specific good or service. The economic theories that developed on the basis of the rational choice, makes an assumption that the consumers will strive towards maximising their utility.

Utility function can be defined as the measure of welfare or satisfaction for any consumer as the function of consuming real commodities, like, food and clothing. The theory is mostly used in rational choice theory for analysing human behaviour.

Step by step

Solved in 5 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions