ISI 2012 optimization clarification

[L14]

Hi, is there a way to solve this through lagrange method or some other way structurally. I get the intution, its like a cost minimization problem for perfect substitutes. But its scarey especially with an option like A. Thanks .

[kangkan]

Hi Ben X^a + Y^a=1 will be concave function at X>0 and y>0 fro all a >1. Hence the minimum solution will always be a boundary solution..like in the case of concave preferences in indiffrence curve analysis

[L14]

Thanks kangkan

[mrittik]

hey ben10 your intuitive approach is right...but here the minimizaTION OF BUDGET LINE subjected to Utility Level...which is the boundary condn