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Constrained optimization: michaels preferences over acai owls (A) anf burritos (B) are given by the following utility function U(A, B) where U(A, B) 5A^.3B^.7. Micaels budget is 100, while acai bowls cost $5 each, and burritos cost $7 each. = a) calculate the optimal consumption A* and B* using the Larange method. b) draw the optimal consumption point (A*, B*) along with the associated indifference curve (I*) with the equation for 1*

Constrained optimization: michaels preferences over acai owls (A) anf burritos (B) are given by the following utility function U(A, B) where U(A, B) 5A^.3B^.7. Micaels budget is 100, while acai bowls cost $5 each, and burritos cost $7 each. = a) calculate the optimal consumption A* and B* using the Larange method. b) draw the optimal consumption point (A*, B*) along with the associated indifference curve (I*) with the equation for 1*

Exploring Economics
Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter10: Consumer Choice Theory
Section: Chapter Questions
Problem 6P
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not use ai please don't
Constrained optimization: michaels preferences over acai owls (A) anf burritos (B) are given by the following utility function U(A, B) where U(A, B) 5A^.3B^.7. Micaels budget is 100, while acai bowls cost $5 each, and burritos cost $7 each. = a) calculate the optimal consumption A* and B* using the Larange method. b) draw the optimal consumption point (A*, B*) along with the associated indifference curve (I*) with the equation for 1*
Transcribed Image Text:Constrained optimization: michaels preferences over acai owls (A) anf burritos (B) are given by the following utility function U(A, B) where U(A, B) 5A^.3B^.7. Micaels budget is 100, while acai bowls cost $5 each, and burritos cost $7 each. = a) calculate the optimal consumption A* and B* using the Larange method. b) draw the optimal consumption point (A*, B*) along with the associated indifference curve (I*) with the equation for 1*
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