If the utility function (U) between food (F) and clothing (C) can be represented as U= F*C, then which combination of food and clothing will a rational consumer choose? a. (F, C) = (9, 25) O b. (F, C) = (25, 4) Oc. (F, C) = (4, 16) d. (F, C) = (4, 25)
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- I have two utility equations U= x^2 + y^2 U = x + ay Please draw the IC curves for each of them. And also, find the cost function associated with them and detailed steps. P.s The cost function for U= x+ay is u.min((p(x),p(y)/a)), but do not know how to get iWhen utility function U(q1, q2)=min{ 34.6 q1, 17 q2} and q1= 33 and q2= 60 are given, find utility level consumer gains?Assume that a∈[-1,1] and θ∈(0,2). The utility function is given by u(a,θ)=a(θ-1). Which of the following action is never optimal ex-post? a. 0 b. All can be optimal ex-post c. 1 d. -1
- Can you assist me with this? Troy has preferences for laptops (L), and drones (D). Laptops costs $750 a unit and drones costs $2000 a unit. Troy has $15000 to spend on both goods. Troy is a utility maximizer. Describe the utility maximization condition. Using the available information at what value is utility expected to be maximizedTotal utility is 0 when marginal utility is 0 True/FalseEvaluate the one specific law which states that the marginal utility of a good orservice declines as more of the good or service is consumed in a specific timeperiod.
- Ann's utility function is U = q1q2/(q1 + q2). Solve for her optimal values of q1 and q2 as a function of p1, p2 and Y.I am unsure the direction the utility functions would go in , with this specific scenario. Ceja has utility function U=A2*B2 , where A equals the number of apples she eats each week, while B is the number of bananas she eats each week. Ceja has $20 to spend on fruit each week. The price of an apple is $1, while the price of a banana is $0.25. Find out the combination of Apples and Bananas that maximize Ceja’ satisfaction
- Ice cream and cakes are perfect substitutes for a child, and 2 units of ice cream is always worth 3 units of cakes (however many ice creams or cakes she might have, she would be willing to give up 2 ice creams to get 3 more cakes to keep the same utility level) . (a) Write down a utility function u(x,y) that represents the child's preferences, where x is the number of ice creams and y is the number of cakes she has. (b) If the prices are px= 8 and py =5, and she has $140 to spend on the two goods this summer, what is her optimal bundle? (c) If the price of ice creams decreases slightly, down to px = 7, what happens to her optimal bundle in this case? Did it change "slightly" compared to (b)?What kind of preferences are represented by a utility function of theform u(x1, x2) = √x1 + x2? What about the utility function v(x1, x2) =13x1 + 13x2?If the utility function of an individual takes the form: U = U ( x 1, x2) = (x1 + 2) 2 (x2 + 3) 3 Where U is total utility, and x1 and x2 are the quantities of two commoditiies consumed: (a) Find the marginal-utility function of each of the two commodities (b) Find the value of the marginal utility of the first commodity when 3 units of each commodity are consumed.
