Determine the amount of composite commodities, Microeconomics

Assignment Help:

a) Joan's utility function can roughly be estimated as :

U = 60Q₁^3/4Q₂^2/3

She chooses from two composite commodities Q₁ and Q₂ whose prices per unit are kshs 20 and Kshs 15 respectively. He has Kshs 6000 to spend on the two commodities. Determine the amount of each commodity that he should buy so as to maximize her utility.

b) Joan would like to minimise her expenditure subject to her enjoying 480 utils of utility. Determine the amount of Q₁ and Q₂ she should buy so as to achieve her objective.

Related Discussions:- Determine the amount of composite commodities

Isoquant, if the price of labour is 2000 per hour and the price of capital ...

if the price of labour is 2000 per hour and the price of capital is 1000 per hour.is there an efficiency point of production.

Question, Briefly discuss the components of macroeconomics system with suit...

Briefly discuss the components of macroeconomics system with suitable explanation

Objectives of the wto, Objectives of the WTO: The agreement establishi...

Objectives of the WTO: The agreement establishing the WTO reiterates the following objectives of the WTO: • Raising standards of living and incomes, ensuring full employm

Consumer choice, Consumer Choice * Consumers choose a combination of g...

Consumer Choice * Consumers choose a combination of goods which will maximize satisfaction they can attain, given the some degree of budget available to them. * The maximiz

Perfect competition, Perfect competition: The behaviours of firms in p...

Perfect competition: The behaviours of firms in perfect competition. It should be noted that firms that fit into perfect competition model are very rare in real-life situation

Total revenue, In fall 2006, Pace University raised its annual tuition from...

In fall 2006, Pace University raised its annual tuition from $24,750 to $29,750. Freshman enrollment declined from 1500 in fall 2005 to 1110 in 2006. assuming the demand curve did

What are the three approaches to measuring gdp, What are the three approach...

What are the three approaches to measuring GDP? The three approaches are: a) The production approach, b) The spending approach and c) The income approach.

Abnormal and normal profits, explain normal profits and abnormal profits

explain normal profits and abnormal profits

Lending capacity of cash, Assume the banking system contains: Total Rese...

Assume the banking system contains: Total Reserves $ 80 billion Transactions Deposited $800 billion Cash held by public $1

Defien hyper - inflation, Q. Defien Hyper - Inflation? Hyper-Inflation:...

Q. Defien Hyper - Inflation? Hyper-Inflation:It's a situation of extremely rapid inflation (reaching 100% per year or more), frequently resulting from a condition of political

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages