Math Problem Statement

Suppose a is a real number between 0 and 1. Rohit is choosing x and y to maximize the following utility function:

U(x, y) = x² + 2xy + y² + 4a² + 8a + 10

subject to the following constraints:

2x + y = 10,

x, y ≥ 0

Then the optimal value of y chosen by Rohit is

(in integer).

Solution

We are tasked with maximizing the utility function:

U(x,y)=x2+2xy+y2+4a2+8a+10U(x, y) = x^2 + 2xy + y^2 + 4a^2 + 8a + 10

subject to the constraint:

2x+y=102x + y = 10

and the non-negativity constraints x0x \geq 0 and y0y \geq 0.

Step 1: Express yy in terms of xx

Using the constraint 2x+y=102x + y = 10, we solve for yy:

y=102xy = 10 - 2x

Step 2: Substitute yy into the utility function

Now substitute y=102xy = 10 - 2x into the utility function U(x,y)U(x, y):

U(x,102x)=x2+2x(102x)+(102x)2+4a2+8a+10U(x, 10 - 2x) = x^2 + 2x(10 - 2x) + (10 - 2x)^2 + 4a^2 + 8a + 10

Step 3: Simplify the utility function

First, simplify each term:

  • 2x(102x)=20x4x22x(10 - 2x) = 20x - 4x^2
  • (102x)2=10040x+4x2(10 - 2x)^2 = 100 - 40x + 4x^2

Substitute these into U(x,102x)U(x, 10 - 2x):

U(x,102x)=x2+(20x4x2)+(10040x+4x2)+4a2+8a+10U(x, 10 - 2x) = x^2 + (20x - 4x^2) + (100 - 40x + 4x^2) + 4a^2 + 8a + 10

Now combine like terms:

U(x,102x)=(x24x2+4x2)+(20x40x)+(100)+4a2+8a+10U(x, 10 - 2x) = (x^2 - 4x^2 + 4x^2) + (20x - 40x) + (100) + 4a^2 + 8a + 10

U(x,102x)=x220x+110+4a2+8aU(x, 10 - 2x) = x^2 - 20x + 110 + 4a^2 + 8a

Step 4: Maximize the utility function

To maximize U(x,102x)U(x, 10 - 2x), we take the derivative with respect to xx and set it equal to zero:

ddx(x220x+110+4a2+8a)=2x20=0\frac{d}{dx} \left( x^2 - 20x + 110 + 4a^2 + 8a \right) = 2x - 20 = 0

Solving for xx:

2x=20x=102x = 20 \quad \Rightarrow \quad x = 10

Step 5: Find yy

Now substitute x=10x = 10 into the constraint y=102xy = 10 - 2x:

y=102(10)=1020=10y = 10 - 2(10) = 10 - 20 = -10

However, yy must satisfy the non-negativity constraint y0y \geq 0. Since y=10y = -10 is not feasible, we must check the boundary conditions.

Step 6: Boundary Condition

The boundary condition occurs when y=0y = 0, so from the constraint 2x+y=102x + y = 10, we solve for xx when y=0y = 0:

2x=10x=52x = 10 \quad \Rightarrow \quad x = 5

Step 7: Conclusion

The optimal value of yy chosen by Rohit is 0\boxed{0}.

Would you like more details or have any questions?

Here are 5 related questions to expand on this problem:

  1. How would the optimal value of yy change if the constraint was different?
  2. What happens to the utility function if a=0a = 0?
  3. Can the problem be solved using a different optimization technique?
  4. How does the range of aa (between 0 and 1) affect the optimal choice of xx and yy?
  5. How would the solution change if the non-negativity constraint was removed?

Tip: Always check boundary conditions when maximizing functions subject to constraints!

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Math Problem Analysis

Mathematical Concepts

Optimization
Quadratic Functions
Constraint Equations

Formulas

U(x, y) = x² + 2xy + y² + 4a² + 8a + 10
2x + y = 10

Theorems

First Derivative Test for Optimization
Boundary Conditions in Optimization

Suitable Grade Level

Undergraduate Level - Calculus/Optimization