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Explain why we have to stop consumption at the end of phase 2? note: there are 3 phases of utility curve 1= upward sloping; the
Explain why we have to stop consumption at the end of phase 2?
note: there are 3 phases of utility curve
1= upward sloping; the last point shows utility-maximization
2= levelled; Stop here because it will only go down
3= downward sloping
here's a picture:
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