Math Problem Statement

Sophia consumes avocados and bananas. Her utility function is given by π‘ˆ(π‘₯1, π‘₯2) = π‘₯1 𝑐 π‘₯2 𝑑, where 𝑐, 𝑑 > 0, π‘₯1 is the quantity of avocados she consumes in pounds, and π‘₯2 is the quantity of bananas she consumes in pounds. Suppose when Sophia has 16 pounds of avocados and 4 pounds of bananas, her marginal rate of substitution is 1 3 (of a pound of bananas for an additional pound of avocados). Determine the mathematical relationship between 𝑐 and 𝑑.

Solution

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Math Problem Analysis

Mathematical Concepts

Utility Function
Marginal Rate of Substitution
Partial Derivatives

Formulas

U(x1, x2) = x1^c x2^d
MRS = MU_x1 / MU_x2 = (c/d) * (x2/x1)

Theorems

Marginal Rate of Substitution (MRS)

Suitable Grade Level

Undergraduate Economics