Q.3 A utility function is given by the equation U = 120 x0.7 y0.3 where x is the number of hours spent playing golf and y is the hours spent playing cards per month. Calculate the values of x and y for which utility is maximised, subject to the constraint 21x + 3y = 180
Q.3 A utility function is given by the equation U = 120 x0.7 y0.3 where x is the number of hours spent playing golf and y is the hours spent playing cards per month. Calculate the values of x and y for which utility is maximised, subject to the constraint 21x + 3y = 180
Chapter10: Consumer Choice Theory
Section: Chapter Questions
Problem 6P
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Q.3 A utility function is given by the equation
U = 120 x0.7 y0.3
where x is the number of hours spent playing golf and y is the hours spent playing cards per
month. Calculate the values of x and y for which utility is maximised, subject to the constraint 21x + 3y = 180
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