Question

# Calculus: Lagrange multiplier and production/utility function

costs him around 40 dollars. Suppose that the utility derived by him from 3 many lunches

and d many dinners in a month is given by the utility function U(E, d) = 101050104. (a) (8 pts) Assuming that Brian has 800 dollars a month in total to spend on eating out,

how many lunches and dinners should he buy to maximize his utility? Use the method of Lagrange multipliers. (b) (1 pts) What is the interpretation of A in this context? (You do not need to compute

A.) (c) (8 pts) Imagine that Brian doesn’t care about money but he wants to eat out exactly

20 times a month (including lunches and dinners). How should he distribute his eating

out among lunches and dinners to maximize his utility? Use the method of Lagrange

multipliers. (d) (1 pt) What is the interpretation of A in this context? (You do not need to compute A.)

2. Brian spends around 20 dollars if he goes out for lunch with coworkers. A dinner with friends

costs him around 40 dollars. Suppose that the utility derived by him from 3 many lunches

and d many dinners in a month is given by the utility function U(E, d) = 101050104. (a) (8 pts) Assuming that Brian has 800 dollars a month in total to spend on eating out,

how many lunches and dinners should he buy to maximize his utility? Use the method of Lagrange multipliers. (b) (1 pts) What is the interpretation of A in this context? (You do not need to compute

A.) (c) (8 pts) Imagine that Brian doesn’t care about money but he wants to eat out exactly

20 times a month (including lunches and dinners). How should he distribute his eating

out among lunches and dinners to maximize his utility? Use the method of Lagrange

multipliers. (d) (1 pt) What is the interpretation of A in this context? (You do not need to compute A.)

Math