Explore BrainMass

Explore BrainMass

    online user's objective function

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Utility Maximizer. See attached file for full problem description.

    © BrainMass Inc. brainmass.com October 9, 2019, 6:52 pm ad1c9bdddf


    Solution Preview

    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 = ...

    Solution Summary

    The average online user's objective function is featured. Utility maximizer descriptions are determined.