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The goal of consumers is to maximize utility from a given budget. Assume there are three commodities with amounts x, y, and z, and prices are $5, $5 and $10 respectively. The budget of the consumer is $750 and the utility function is given to be U = xyz . Use the method of Lagrange Multipliers, find the maximum utility value U which can fully utilize the budgetbudget.

The goal of consumers is to maximize utility from a given budget. Assume there are three commodities with amounts x, y, and z, and prices are $5, $5 and $10 respectively. The budget of the consumer is $750 and the utility function is given to be U = xyz . Use the method of Lagrange Multipliers, find the maximum utility value U which can fully utilize the budgetbudget.

Algebra for College Students
Algebra for College Students
10th Edition
ISBN:9781285195780
Author:Jerome E. Kaufmann, Karen L. Schwitters
Publisher:Jerome E. Kaufmann, Karen L. Schwitters
Chapter8: Functions
Section8.CT: Test
Problem 19CT
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The goal of consumers is to maximize utility from a given budget. Assume there are three
commodities with amounts x, y, and z, and prices are $5, $5 and $10 respectively.
The budget of the consumer is $750 and the utility function is given to be U = xyz . Use the
method of Lagrange Multipliers, find the maximum utility value U which can fully utilize the
budgetbudget.

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