Mathematics, 05.05.2020 17:04, Mbach2291
A student has a monthly budget of $800. She can spend her budget on two items, X and Y. Each unit of X costs $20 and each unit of Y costs $10. If the student has a utility function of U = 348X + 100Y + 6X2 + 4Y2 + 2XY, what is the optimal amount of X and Y for her to consume to have the maximum utility? What is this total utility? What is the value of lambda and what does this mean?
Answers: 1
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