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Consider a consumer who faces the following utility function: U(x₁x₂) = 3x₁₂x where the consumer faces prices and income of Px₁ = 3; Px2 = 8; M=150. Using the equi-marginal principle, what are the utility maximizing quantities of both goods? O x₁ = 50; x2 = 37.5 O x₁ = 0.4; x2 = 2 O x₁ = 50; x2 = 20 O x₁ = 16.6; x2 = 12.5 O x₁ = 33.3; x2 = 6.67 O No answer

Consider a consumer who faces the following utility function: U(x₁x₂) = 3x₁₂x where the consumer faces prices and income of Px₁ = 3; Px2 = 8; M=150. Using the equi-marginal principle, what are the utility maximizing quantities of both goods? O x₁ = 50; x2 = 37.5 O x₁ = 0.4; x2 = 2 O x₁ = 50; x2 = 20 O x₁ = 16.6; x2 = 12.5 O x₁ = 33.3; x2 = 6.67 O No answer

Microeconomic Theory
Microeconomic Theory
12th Edition
ISBN:9781337517942
Author:NICHOLSON
Publisher:NICHOLSON
Chapter3: Preferences And Utility
Section: Chapter Questions
Problem 3.3P
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Consider a consumer who faces the following utility function: U(x₁x₂) = 3x₁x² where the consumer faces prices and income of Px₁ = 3; Px2 = 8; M =150. Using the equi-marginal principle, what are the utility maximizing quantities of both goods? O x₁ = 50; x2 = 37.5 O x₁ = 0.4; x₂ = 2 O x₁ = 50; x2 = 20 O x₁ = 16.6; x2 = 12.5 O x₁ = 33.3; x2 = 6.67 O No answer
Transcribed Image Text:Consider a consumer who faces the following utility function: U(x₁x₂) = 3x₁x² where the consumer faces prices and income of Px₁ = 3; Px2 = 8; M =150. Using the equi-marginal principle, what are the utility maximizing quantities of both goods? O x₁ = 50; x2 = 37.5 O x₁ = 0.4; x₂ = 2 O x₁ = 50; x2 = 20 O x₁ = 16.6; x2 = 12.5 O x₁ = 33.3; x2 = 6.67 O No answer
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