Question
Consider a 1 period economy with consumers, government and firms. Assume twice continuously differentiable, quasiconcave utility function and concave production function with constant returns to
Consider a 1 period economy with consumers, government and firms. Assume twice continuously differentiable, quasiconcave utility function and concave production function with constant returns to scale. The consumer derives utility from consuming the consumption good c and from having l hours of leisure. She receives real wage w for each of the n hours she works; she also receives firms' real dividends D (this is income she takes as given). The government raises revenue through lump sum taxes t charged to consumers ,in order to finance government expenditure g. The firms use a production function F that depends on current capital k and labor Nd inputs.
Write down and solve the consumer's optimality problem, Take first order conditions and derive the consumer's optimality conditions. please help i cannot tell if i'm overthinking "deriving" the conditions
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