Suppose a person's utility function for items x and y is u = ln(x) + ln(y), and he currently has $200 in his pocket, and the price of x is $10 per item and the price of y is $20 per item, find the combination that maximises his utility.
Suppose a person's utility function for items x and y is u = ln(x) + ln(y), and he currently has $200 in his pocket, and the price of x is $10 per item and the price of y is $20 per item, find the combination that maximises his utility.
Algebra & Trigonometry with Analytic Geometry
13th Edition
ISBN:9781133382119
Author:Swokowski
Publisher:Swokowski
Chapter5: Inverse, Exponential, And Logarithmic Functions
Section: Chapter Questions
Problem 9T
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Suppose a person's utility function for items x and y is u = ln(x) + ln(y), and he currently has $200 in his pocket, and the price of x is $10 per item and the price of y is $20 per item, find the combination that maximises his utility.
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