Utility Maximizer. See attached file for full problem description.© BrainMass Inc. brainmass.com October 9, 2019, 6:52 pm ad1c9bdddf
Please see the attached file.
The average online user's objective function is:
Max U = Uc + Ub = Bc*Tc3/4 + Bb*Tb3/4
where subscripts "c" for communication and "b" for browsing.
The constraint is Tc + Tb = 2.5
Then the lagrangian function is:
L= Bc*Tc3/4 + Bb*Tb3/4 + λ(2.5 - Tc - Tb)
The first order condition is:
(1) dL / dTc = 3/4 Bc Tc-1/4 - λ = 0 or 3/4 Bc Tc-1/4 = ...
The average online user's objective function is featured. Utility maximizer descriptions are determined.