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How do I solve a maximization equation with 3 unknowns? for example the utility function: U = ln(C1) + ln(C2) + ln(C3) s.t. C3= (1+r2)(1+r1)[Ybar
How do I solve a maximization equation with 3 unknowns?
for example the utility function: U = ln(C1) + ln(C2) + ln(C3)
s.t. C3= (1+r2)(1+r1)[Ybar - (C2/(1+r1)) -C1]
I'm trying to find optimal level of C1, C2, and C3?
Thank you in advance!
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