Determine the utility maximizing combination of x and y
Michael has the following utility function:
U(X,Y ) = log(X) + log(Y ),
where the price of X is $3 and the price of Y is $1. He has decided to allocate $120 on X and Y. What is his utility maximizing combination of X and Y?
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Where price of X is $3 and price of Y is $1. He has decided to allocate $120 on X and Y. Determine his utility maximizing combination of X and Y?
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