Aimee and Bruce live next door. Aimee likes to have parties at her place. u^(p) = 150p – ³2² is her utility function where p is the number of hours of partying she has at her place. Bruce is trying to get into grad school and the parties make it difficult for him to study. His utility function is u³(s) = 90s — (s+p)² where s is the number of hours he studies. How many hours s; will Bruce work if Aimee and Bruce are making decisions independently, and how many hours sp is it socially optimal for Bruce to work? (a) sį = 40, sp = 70 (b) sį = 70, sp = 40 (c) sį = 30, Sp = 90 (d) sį = 40, Sp = 90
Aimee and Bruce live next door. Aimee likes to have parties at her place. u^(p) = 150p – ³2² is her utility function where p is the number of hours of partying she has at her place. Bruce is trying to get into grad school and the parties make it difficult for him to study. His utility function is u³(s) = 90s — (s+p)² where s is the number of hours he studies. How many hours s; will Bruce work if Aimee and Bruce are making decisions independently, and how many hours sp is it socially optimal for Bruce to work? (a) sį = 40, sp = 70 (b) sį = 70, sp = 40 (c) sį = 30, Sp = 90 (d) sį = 40, Sp = 90
Chapter4: Systems Of Linear Equations
Section4.3: Solve Mixture Applications With Systems Of Equations
Problem 158E: The manufacturer of an energy drink spends $1.20 to make each drink and sells them for $2. The...
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Transcribed Image Text:Aimee and Bruce live next door. Aimee likes to have parties at her place. u4(p) = 150p – is
her utility function where p is the number of hours of partying she has at her place. Bruce is trying
to get into grad school and the parties make it difficult for him to study. His utility function is
uB (s) = 90s
if Aimee and Bruce are making decisions independently, and how many hours s, is it socially optimal
for Bruce to work?
(s+p)" where s is the number of hours he studies. How many hours s; will Bruce work
-
2
(а) s; — 40, s, — 70
(b) si = 70, s, = 40
(c) si =
30, sp = 90
(d) s; = 40, Sp = 90
(Continued from previous question.) Assume that Aimee and Bruce live in university housing. To
implement the socially optimal outcome, the university implements a policy where tenants need to get
a permission slip from the university for each hour they hold a party. How much should the university
sell these slips for to recover the socially optimal outcome?
(a) f
= 10
(Ъ) f
40
(c) f = 150
(d) f = 90.
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