Re: problem sets

Posted by X on Sep 27, 2013; 4:50pm
URL: http://discussion-forum.276.s1.nabble.com/problem-sets-tp7583841p7584033.html

We should consider these three cases:

x>y,
x<y,
x=y.

In each of these cases,
[[Min(x,y)]^2+[Max(x,y)]^2]^1/2=(x^2+y^2)^1/2.

and, by Lagrangian or other method, x=y=5 is the optimum level of consumption to maximize utility (max U=50^1/2).