ohhhhhhhh

[TJ]

so does anyone know anything about economics, im bored out of my mind and stuck on a problem i have a utility function : u(x1,x2)= Max (2x1, x2) and prices of 1.5 for x1 and 2 for x2 i need an MRS and demand demand for both variables. oh btw income = 60. almost forgot

[TJ]

Re: ohhhhhhhh

ps. please help if you can, im clueless. i dont know how to f'ing translate that utility function to an MRS, quite confusing. if this is any help btw, its a concave utility function, that was a hint apparantly

[TJ]

Re: ohhhhhhhh

does noone have any pity?

[TJ]

Re: ohhhhhhhh

aright at least laugh at me and entertain me, this is ridiculous

[TJ]

Re: ohhhhhhhh

i love talking to myself

[One-Way]

Re: ohhhhhhhh

Haha, man, I wish I could help. Only Economic's education I have is a semester in High School.

[Sip]

Re: ohhhhhhhh

What is an MRS?

[Sip]

Re: ohhhhhhhh

Nevermind ... found it here.

Sounds like you need to calculate du/dx1 and du/dx2:

u(x1,x2)=MAX(2x1,x2)

du/dx1=2 for 2x1>x2
du/dx1=0 for 2x1<x2

du/dx2=0 for 2x1>x2
du/dx2=1 for 2x1<x2

I'll let you work out the rest since I think maybe the MAX function was what was throwing you off.

[TJ]

Re: ohhhhhhhh

aha sip, shat shnorakalutsyun.