Nikki cares about two things: how much leisure time she has (x1) and what mark she gets on tomorrow’s Micro exam (x2).

1. Nikki cares about two things: how much leisure time she has (x1) and what mark she gets on tomorrow’s Micro exam (x2). Her preferences between these goods can be represented by the utility function:

u(x1, x2) = x1 + x2

Nikki has 16 hours of today to distribute between studying and relaxing (she sleeps the other 8). Studying positively affects Nikki’s mark up to a certain point, but if she tries to cram too much studying into one day, she will get tired and do worse on tomorrow’s exam. Where s represents the hours Nikki spends studying, the relationship between her mark and s is as follows:

where a > 0.

(a) Suppose a = 6. At what level of s does continuing to study negatively affect

Nikki’s mark?

(b) Suppose a = 6. Write down Nikki’s constraint: the relationship between x1 and

x2 that holds if Nikki uses all her 16 hours for either leisure or studying.

(c) Suppose a = 6. Find Nikki’s optimal choice of x1 and x2.

(d) For what values of a is Nikki’s optimal choice a boundary solution in which she spends all 16 hours studying? 

Show more







Calculate Your Essay Price
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more

Order your essay today and save 10% with the coupon code: best10