Consider the health maximization problem with the utility function, U (x1,22)= -x1 + 921 - a, + 722 + 15 subject to the constraint c1
Consider the health maximization problem with the utility function, U (x1,22)= -x1 + 921 - a, + 722 + 15 subject to the constraint c1 + 02 = 3 a. Set up the Lagrangean expression. b-d. Find the first order conditions (on a1, 22, and ) respectively) for maximizing the Lagrangean. e-g. Find the optimal values of 21, 22, and A respectively. a L = FOC (X1)
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