4. Jen from Thunder Bay consumes housing (H) and food (F). Her student stipend is $600/month. She has a utility function of U(H, F) = F'/3 H²/3¸ The initial price of food is pp = 1 and the price of housing is pí = 10. (a) Determine how much food and housing she consumes. (b) Suppose the government decides to subsidize her housing by 50%. This has the effect of lowering the price she actually pays for housing to $5. If the price of food is $1 and the price of housing is $5, calculate Jen's utility maximizing bundle of goods. (c) How much does the Government spend on this program (just on Jen)?

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Cost of Production

In economic theory, production costs are the costs incurred by an industrial organization when it engineers a project or provides a service that generates revenue and benefits. Labor costs, raw materials, consumable manufacturing costs, and general overhead sum up, accounting for production costs. Total cost data is calculated by combining total direct costs of materials, labor costs, and total production costs.