Find the numerical values of the optimal c * and h*

Reference no: EM131394778

Utility maximization, graphs (9 points) Suppose Becky's utility function for churros (C) and hot dogs (H) is given by U(C, H) = min(C, 4H), and she has $20 in income.

(a) Graphically identify the utility maximizing quantities of X and Y if the prices of C and H are 2 and 2, respectively. Find the numerical values of the optimal C * and H* .

(b) Graphically identify the utility maximizing quantities of X and Y if the prices of C and H are 2.5 and 10, respectively. Find the numerical values of the optimal C * and H* .

(c) Suppose the prices of C and H are pC and pH, respectively, and income is I. Find the values of the optimal C * and H* in terms of pC, pH, and I.

Reference no: EM131394778

Questions Cloud

Identify the conclusion of businessmen passage : Determine the kind of non-argument.- There is no doubt that some businessmen conspire to shorten the useful life of their products in order to guarantee replacement sales.

List at least five types of potential losses : Liquidated damages are intended to represent anticipated losses to the owner based upon circumstances existing at the time the contract was made. List at least five types of potential losses to the owner that would qualify for determination of suc..

How would you handle each of the three scenarios : How would you handle each of the three scenarios? Provide specific examples and business communication strategies learned throughout the course.

Identify conclusion of brain and the nervous system passage : Identify the conclusion. For those that are not, determine the kind of non-argument.- The brain and the nervous system are composed of two types of cells- neurons and glial cells.

Find the numerical values of the optimal c * and h* : Graphically identify the utility maximizing quantities of X and Y if the prices of C and H are 2 and 2, respectively. Find the numerical values of the optimal C * and H* .

Identify conclusion of areas where rats are problem passage : Determine which of the following passages are arguments. For those that are, identify the conclusion. For those that are not, determine the kind of non-argument.- In areas where rats are a problem, it is very difficult to exterminate them with bait..

Calculate the marginal rate of substitution : Suppose that there is another consumer (let's call her C). You don't know anything about her utility function or her income. All you know is that she consumes both goods. What do you know about C's marginal rate of substitution at her optimal cons..

Draft a full annotated bibliography : Five high-quality sources from journals in your field and related to your thesis. The sources should be effective in supporting your argument (thesis claim) for your intended audience.

Identify the conclusion of think of human population passage : For those that are not, determine the kind of non-argument.- Although it is customary to think of human population as increasing continuously without declines or fluctuations, population growth has not been a steady march.

User Account

All Pages