Essay
Mark's utility function over dance show tickets (D) and baseball game tickets (B) can be expressed as U(D,B) = D + 5B.
a. Use calculus to argue whether Mark's preferences also can be represented by U(D,B) = 5DB.
b. If Mark's utility function is U(D,B) = D + 5B , is the Lagrangian approach an appropriate way to solve for his optimal quantities?
c. If Mark's utility function is U(D,B) = 5DB, is the Lagrangian approach an appropriate way to solve for his optimal quantities?
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a. From the online appendix, we know tha...View Answer
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