Answer to Question #240235 in Microeconomics for anucn

Question #240235

Imagine that the utility maximizing consumer, endowed with a rational preference, gets swayed by advertisements for the products. Develop a modification of the utility maximization problem.

Expert's answer

utility U is derived from basic characteristics and qualities Zj miniscent of Bentham’s causes of pleasures and pains. These commodities, in turn, are produced by the household using market goods xkjt ,ime tj ,and human capital Ha s inputs.

Therefore

"U\n=\nU\n(\nZ\n1\n,\n\u2026\n,\nZ\nn\n)\\\\\n,\nwhere\\\\\n\n\nZj=fj\n(\nx\n_{1\nj}\n,\n\u2026\n,\nx\n_{m\nj}\n,\nt\n_j\n,\nH\n)\n."