Question

Regina's utility function can be written as 3x0.30 y0.10. Her budget equation is 5.00x + 10.00y = 700.00. The Lagrangian is L = 3.20.30 y0.10 – 15.00x + 10.00y – 700.00). The partial derivative is Choose one: O A. 0.90x -0.70 40.10 – 5.001. B. 32 -0.7040.10 – 5.002. OC. 0.90x=0.70 y -0.90 – 5.001. OD. 0.90x -0.70 40.10 – 5.00.

Answer 1

Answer : The answer is option A.

Given,

L = 3 x^0.30 y^0.10 - $\lambda$(5.00x + 10.00y - 700.00)

Now,

$\delta$L / $\delta$x = 3 * 0.30 x^(0.30 - 1) y^0.10 - $\lambda$ * 5.00

=> $\delta$L / $\delta$x =0.90 x^-0.70 y^0.10 - 5.00$\lambda$

Therefore, option A is correct.