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1. (54 pts) Tom's utility function is given by U(T1, (2) = 0.25 Inc, + 0.75 In2, where c1 and r2 are the two goods
1. (54 pts) Tom's utility function is given by U(T1, (2) = 0.25 Inc, + 0.75 In2, where c1 and r2 are the two goods he consumes. The price of good an is p. The price of good 12 is p2. His income is m. (a) Write his maximization problem, calculate his MRS between the two goods and find his demand functions for the two goods. (15 pts)
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International Business
Authors: Michael Geringer, Jeanne M. McNett, Michael S Minor, Donald A Ball
1st edition
78029376, 78029370, 1259317226, 978-1259317224
