A consumer can spend £1280 on two goods x and y, costing £12 and £16 per unit respectively. His utility function is given by the formula u(x, y) = x ^ (3/4) * y^(1/4) Determine the values of x and y that maximize utility u(x,y) under the budget constraint 12x+16y=1280
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A consumer can spend £1280 on two goods x and y, costing £12 and £16 per unit respectively. His utility function is given by the formula u(x, y) = x ^ (3/4) * y^(1/4) Determine the values of x and y that maximize utility u(x,y) under the budget constraint 12x+16y=1280
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