Describe the maximum level of utility joe receives

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Reference no: EM13179393

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: EM13179393

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