Compute the utility maximizing choice of food consumption


Problem

Alice has the utility function U(F, C) = F^ 3/4 ^ C 1/4 (these are exponents) She has $35 of income and faces a price of food, PF = $6 and a price of clothing, PC = $10. Compute the utility maximizing choice of food and clothing consumption (denoted F and C respectively). Use calculus and show all steps.

 

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Microeconomics: Compute the utility maximizing choice of food consumption
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