[Solved] Suppose Natasha’s income is $200 per month, a concert ticket costs $30, a film ticket costs $5, and her preferences correspond to the utility function U ( C , F

in this post you eill get answer of Suppose Natasha’s income is $200 per month, a concert ticket costs $30, a film ticket costs $5, and her preferences correspond to the utility function U ( C , F by insureinsurancelife


Suppose Natasha’s income is $200 per month, a concert ticket costs $30, a film ticket costs $5, and her preferences correspond to the utility function U ( C , F ) = C 0.75 F 0.25 , where C stands for the number of concerts and F stands for the number of films. For that utility function, the marginal utility of concert tickets is 0.75( F / C ) 0.25 , and the marginal utility of film tickets is 0.25( C / F ) 0.75. (To understand why, refer back to Section 4.4, where we discussed Cobb-Douglas utility functions.) How many film tickets will she purchase, and how many concert tickets (As before, fractions are allowed.)


Thank you for coming, Let us know what else we should do to make our content interesting and don’t forget to check the comment section because sometimes our users drop some interesting questions or riddles below and you can enjoy solving them. In the end it benefits the whole community.

Leave a Comment