SOLVED: Suppose a utility function has the Cobb Douglas form with u(x,y) = x * ln(y). What is the total differential of the utility function and what is the MRS at any value of x and y? Write down the maximization problem that represents this person's choice. What are the first-order conditions for a maximum? Find the demand equations for x and y.
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SOLVED: Suppose a utility function has the Cobb Douglas form with u(x,y) = x * ln(y). What is the total differential of the utility function and what is the MRS at any value of x and y?
SOLVED: Suppose a utility function has the Cobb Douglas form with u(x,y ...
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In a pure exchange economy with two goods, G and H, the two traders have Cobb-Douglas utility functions. Amos' utility is Ua=(Ga)^α(Hα)^1-α and Elise's is Uc=(Gc)^β(Hc)^1-β . What are their marginal rates of substitution? Between them, Amos and Elise own 120 units of G and 90 units of H . Thus, if Amos has Ga and Ha, Elise has Ge=120-Ga and He=90-Ha . Solve for their contract curve. | Numerade
In a pure exchange economy with two goods, G and H, the two traders have Cobb-Douglas utility functions. Amos' utility is Ua=(Ga)^α(Hα)^1-α and Elise's is Uc=(Gc)^β(Hc)^1-β . What are their marginal rates of substitution? Between them, Amos and Elise own 120 units of G and 90 units of H . Thus, if Amos has Ga and Ha, Elise has Ge=120-Ga and He=90-Ha . Solve for their contract curve. | Numerade
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In a pure exchange economy with two goods, G and H, the two traders have Cobb-Douglas utility functions. Amos' utility is Ua=(Ga)^α(Hα)^1-α and Elise's is Uc=(Gc)^β(Hc)^1-β . What are their marginal rates of substitution? Between them, Amos and Elise own 120 units of G and 90 units of H . Thus, if Amos has Ga and Ha, Elise has Ge=120-Ga and He=90-Ha . Solve for their contract curve. | Numerade
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