Utility Maximization: Cobb Douglas Utility Function

Equating MRS and the slope of the budget line to find the optimal consumption bundle that maximizes the utility. If you are reading Varian's textbook, treat a as c/(c+d), and 1-a as d/(c+d).

[@Rundtj45]

thanks, very clear explanation with different colour easy to understand

[@IrisFranz]

Glad it helped!

[@rubabsikander987]

I love you for this, just a blessing.

[@IrisFranz]

Glad that you find the video helpful!

[@Slayer_Abbyss]

Very well explained, thank you

[@chethanaamukotuwa4015]

Without a budget constraint can we find the slope of a given utility function?

[@IrisFranz]

Yes. Negative p1/p2.

[@lemonwang269]

讲解的很好，很清晰。谢谢你 Thanks for sharing

[@IrisFranz]

You’re welcome. Happy learning!

[@Jacobovvv]

many thanks!

[@IrisFranz]

You’re welcome!