- #1
jack90
- 1
- 0
ok this is just an example so you can see where I am having problems with these(it isn't hw)
i need to find the optimum values of X and Y
U= XY
m= Psuby(Y) + Psubx(X)
the first order conditions are
Y +u*Psubx
X+ u*PsubY
m= Psuby(Y) + Psubx(X)
now , where I am having problems is how do i find the optimum values from that. I know you are supposed to plug the FOC in but i can't get the answer my book shows me. could somebody walk me through that part?
i need to find the optimum values of X and Y
U= XY
m= Psuby(Y) + Psubx(X)
the first order conditions are
Y +u*Psubx
X+ u*PsubY
m= Psuby(Y) + Psubx(X)
now , where I am having problems is how do i find the optimum values from that. I know you are supposed to plug the FOC in but i can't get the answer my book shows me. could somebody walk me through that part?