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8) Repeat the previous question, but this time assume that Every unit of Good 1 consumed above50 units costs one and a half times the
8) Repeat the previous question, but this time assume that "Every unit of Good 1 consumed above50 units costs one and a half times the colsalf the cost a unit of consumption consumed up to 50 units". Using a figure of the appropriate budget sets, answer which of the folowing of the following statements are true . a. The "Extreme Value Theorem" ensures that the utility maximization problem has a well-defined solution for all (p, y) >>0. b. For every (p, y) >>0, there must be auniqueutility maximizing choice. c. Part (b) but only if preferences are also strictly convex and locally non-satiated. d. Since the budget sets are not convex, "Extreme Value Theorem" does not apply here
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