Diogo has a utility function: The price of X is $p_x = $2$, the price of Z is $p_z = $2$, and his income is $600. What is Diogo's optimal bundle? (round your answer to one decimal place) $X_o = $ units $Z_o = $ units $U = 100x^{0.9}z^{0.1}$
Added by Alexander H.
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First, let's calculate the amount of X that Diogo can afford to buy with his income. - The price of X is $2, and his income is $600. - So, the maximum number of units of X that he can afford is 600 / 2 = 300 units. Show more…
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