Math Problem Statement
Sophia consumes avocados and bananas. Her utility function is given by π(π₯1, π₯2) = π₯1 π π₯2 π, where π, π > 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 π and π.
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
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