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Solution: The problem of the consumer is to maximize 1+p1 subject to + P2C2 W The Lagrangian for the problem is: _ + -
Solution: The problem of the consumer is to maximize 1+p1 subject to + P2C2 W The Lagrangian for the problem is: _ + - - P2C21 1-0 1+p1-9 The first-order conditions are: Solving the first-order conditioms together, we get: together with the budget constrail w (1 + 0 + (p,/P2) 0 (ft/P2)a-0'/0 (1 + + (p1/P2)
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Fundamentals of Managerial Economics
Authors: Mark Hirschey
9th edition
324584830, 978-0324588781, 032458878X, 978-0324584837
