12. Now, the landlords problem is maxe. H (e. h + (1 e) l) h.1 such that e h-l C 1 =lLL - where
12. Now, the landlords problem is maxe. H (e. h + (1 e) l) h.1 such that e h-l C 1 =lLL - where the first constraint is the tenant's ICC and the second is the limited liability con- straint (LLC). Ignore the participation constraint (PC) for now. Solve the optimization problem and find h. Call it ht and express it in terms of H, c, w. LL
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To solve the optimization problem well maximize the landlords objective function with respect to the ...
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Authors: H. Fogler
6th Edition
013548622X, 978-0135486221
