Given function U(C,H)=C^2H. Advise how to maximise utility from two goods (C&H) given that price of both =200?

money to spend is 350. Also calculate quantities demanded for both C %26amp; H.

Given function U(C,H)=C^2H. Advise how to maximise utility from two goods (C%26amp;H) given that price of both =200?
The necessary condition to maximize goods that can be split.


MU of C /MU of H=Price of C/Price of H =1


dU/dC=2CH=a


dU/dH=C^2=b


a/b=1; 2H=C; H= (1/2) C


C200+ 1/2 C x200=350


C200+100C=350


C=350/300=1.16 H=0.5x1.16=0.58 (C,H)=(1.16,0.58)
Reply:So the cost of both items is 200, but you only want to spend 350? So you can't even buy 1 of each. The answer is C=1 H=0 which would yield the greatest utility, 200 over option 2 (C=0 H=1 U=0).

snow of june