Question 11 · Microeconomía II UPF 2016

Question 11 (4 points). Optimal bundle in Cobb-Douglas utility

Assume Maria has the utility function $U(x_1, x_2) = x_1^{1/3} x_2^{2/3}$ for $x_1, x_2 > 0$. If her income is $m = 120$ and prices are $p_1 = 40$ and $p_2 = 8$, which bundle represents her optimal choice?