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What Gimbo most enjoys for dinner is eating fig leafs (F) and to accompany his meal with nothing better than an Arak (A) drink on the rocks. His utility function is represented by this equation : U=33(F)(A^2). Gimbo has $100 to spend on dinner during the week. At his favorite lebanese restaurant, fig leafs cost $1.00 each, and one of the top Araks cost $10 the glass. If Gimbo wants to maximize his utility, what is the optimal number of fig leafs and Arak he will decide to purchase ?

Econometrics, Economics

  • Category:- Econometrics
  • Reference No.:- M9694595

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