Describe the maximum level of utility joe receives

Assignment Help Macroeconomics

Reference no: EM13179381

Assume that Joe derives utility based on the following utility function U(x,y) = (x1^0.6 + X2^0.6)^1/0.6

If Joe's income is $5,040 a month, and the price of goods X1 and X2 are $45 and $5 respectively, derive the following:

A) The quantity of X1 and X2 that maximize Joe's utility

B) The maximum level of utility Joe receives.

Reference no: EM13179381

Questions Cloud

Determine the max capacity for the orbital : what is a general formula that can be used to determine the max capacity for the following- a shell

State express the original concentration of cscl solution : After all the water is evaporated from 10.0 mL of a CsCl solution, 3.75 g of CsCl remains. Express the original concentration of CsCl solution in each of the following units.

What is the maximum level of utility the consumer recieves : The consumer must pay $20 for good 1 and $15 for good 2. The consumer's monthly income is $6,000. A) determine the optimal quantities of X1 and X2 the consumer should purchase in order to maximize their utility. B) what is the maximum level of utilit..

Explain what is the molarity of the final na2so4 solution : A solution is prepared by dissolving 30.0 g of Na2SO4 in enough water to make 750.0 mL of solution. A 10.00 mL portion of this solution is then diluted to a final volume of 100.0 mL.

Describe the maximum level of utility joe receives : If Joe's income is $5,040 a month, and the price of goods X1 and X2 are $45 and $5 respectively, derive the following: A) The quantity of X1 and X2 that maximize Joe's utility B) The maximum level of utility Joe receives.

Write the chemical equation for the particular titration : In an acid base titration a 25mL portion of a solution containing sulfuric acid (H2SO4) was titrated with a 0.200M NaOH(aq). write the chemical equation for this particular titration

Define the gdp deflator price index : An analyst locates a study that estimates the average beachgoer was willing to pay $2.25 per hour in 2000 to visit a renourished beach. What is the value of this in 1999 dollars?c. An analyst determines that the real operating expenses for a sewa..

State the oral hypoglycemic agent metformin yielded : Analysis of a 1.000 g of the oral hypoglycemic agent metformin yielded 0.3720 g of carbon, 0.0858 g of hydrogen, and 0.5422 g of nitrogen.

Explain lithium hydrogen carbonate decomposes by heat : Lithium hydrogen carbonate decomposes by heat; the reaction is represented by the balanced equation: 2LiHCO3 (s) --------> Li2CO3(s) + CO2(g) + H20 (g)

User Account

All Pages