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If spomebody can answer this question for me.

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If spomebody can answer this question for me.

rohitdubey52
3 posts
Suppose there are two goods x1 and x2 and the utility function of individual is U(x1, x2) = max{x1, x2}. The budget constraint of the individual is 3x1 + 4x2 = 12. What is the optimal bundle (x1, x2) chosen by the individual?
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Re: If spomebody can answer this question for me.

Eco16
144 posts
We buy all of x1 which is 4.
So (4,0) is the optimal bundle.