There are 101 people working together. Each person’s utility function is u(x, y) = x +...
There are 101 people working together. Each person’s utility function is u(x, y) = x + 0.5y − x2/2 where x is the number of hours she works, and y is the number of hours everyone else (not including herself) works. What is the socially optimal number of hours each person should work?
(a) 1 (b) 50
(c) 100 (d) 51
answer: D
Could you please explain???
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There are 101 people working together. Each person’s utility
function is u(x, y) = x +...
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4. Assume a utility function described by u(x,y)=2/xy. a. Given the utility function, u(x,y)=2xy, sketch the...
4. Assume a utility function described by u(x,y)=2/xy. a. Given the utility function, u(x,y)=2xy, sketch the indifference curves for u = 50, 72 and 98. e indifference Carved forbise banta un b. Sketch budget constraint of 5x +10y = 30. Label intercepts (where it crosses the axes). 00:0 VE c. Solve for calculate) the optimal bundle (x, y) and sketch the optimal solution.
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Suppose James derives utility from two goods {x,y}, characterised by the following utility function: $u(x, y)...
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Consumer A has a utility function u(x,y) = xA + yA and an endowment of (x,y)...
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4. Assume a utility function described by u(x,y)=2/xy. a. Given the utility function, u(x,y)=2xy, sketch the indifference curves for u = 50, 72 and 98. e indifference Carved forbise banta un b. Sketch budget constraint of 5x +10y = 30. Label intercepts (where it crosses the axes). 00:0 VE c. Solve for calculate) the optimal bundle (x, y) and sketch the optimal solution.
Suppose James derives utility from two goods {x,y},
characterised by the following utility function: $u(x, y) =
2sqrt{x} + y$: his wealth is w = 10 let py = 1:
(a) What is his optimal basket if px = 0.50? What is her
utility?
(b) What is his optimal basket and utility if px = 0.20?
(c) Find the substitution effect and the income
effect associated with the price change.
(d) What is the change in consumer
surplus?
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