This question has been answered
Suppose Paul's utility depends on the amount of time spent playing on the Internet (x
- ) and the amount of time playing video games (y), and his utility function is
- U(x,y) = 0.2 ln(x) + 0.8 ln(y)
- He has 15 hours of free time to spend on these two activities each week, and his goal is to maximize his utility.
- a. Find the total derivative of the utility function. (2)
- b. Write a time constraint and set up the lagrangian for this constrained maximization
- problem. (2)
- c. What is the optimal amount of time spent surfing the Internet and playing video games
- each week?
Answered by Expert Tutors
367,984 students got unstuck by Course
Hero in the last week
Our Expert Tutors provide step by step solutions to help you excel in your courses