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Calculation of Utility Maximization on Education

ByHomework Help Classof1

"(a) Let Household A’s utility function have α = 0.5 = β. What is the household’s utility maximizing bundle? (b) What is the share of Household A’s income spent on education? (c) What is the household’s utility if they consume the maximum amt of G allowed by their budget and an amt of free education provided by the government, EF = 20? (d) Does this household consume more or less education if EF = 20 is provided by the government? (e) Let Household B’s utility function have α = 0.15 and β = 0.85. What is the household’s utility maximizing bundle? "

Details

Publication Date
Jul 4, 2013
Language
English
Category
Education & Language
Copyright
All Rights Reserved - Standard Copyright License
Contributors
By (author): Homework Help Classof1

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Format
PDF

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