Calculate and interpret joseph marginal rate of substitution

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Joseph has the utility function U(F,H) = 10F2H, where F is the quantity of food he 54) consumes per year and H is the quantity of housing per week. Suppose the price of food is $10 and the price of housing is $5, while Joseph has an income of $150/week.

a. Calculate and interpret Joseph's marginal rate of substitution (MRS).

b. Write out Joseph's constrained optimization problem with the information provided. c. Solve for Joseph's optimal consumption bundle of food and housing.

d. Show that at the optimum, Joseph consumes the bundle along the budget constraint where MRS = MRT.

Reference no: EM132473162

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