Using survival constraint coupled with his budget, Ask an Expert

Economics

Q1) Sam has a utility fcn: U(x₁,x₂) = 3x₁² + x₂³

further suppose P_x1 = 1 and P_x2 = 1. Also Income = 4

Sam has to consume at least one unit of both goods to survive, and he can only consume whole amounts of each good, meaning he can't consume fractions of either good. Using survival constraint coupled with his budget constraint tell me what bundle (amounts of x₁and x₂) maximizes his utility.

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M922921

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