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anonymous

  • one year ago

2. Clark’s utility function is based on two goods – wigs and suits. His utility function is U (W, S) = 2WS2, and his marginal utilities from wigs and suits are MUW = 2S2 and MUS = 4WS respectively. The price of wigs is PW = $6 and the price of suits is PS = $24. What is the optimal bundle (combination of suits and wigs) if Clark’s income is $180?

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  1. anonymous
    • one year ago
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    2WS2 = \(2^W S^2\)?

  2. anonymous
    • one year ago
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    What is the optimal bundle aka the combination of suits and wigs if the income is $180

  3. anonymous
    • one year ago
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    gee, you want to explain what U(W,S) = 2WS2 is supposed to mean? what MUW?

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