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In the same objective function with C1 substituted out, take the first-order condition with respect to labor. Hint: After you substitute C1 back into the
In the same objective function with C1 substituted out, take the first-order condition with respect to labor. Hint: After you substitute C1 back into the marginal utility function, observe that you obtain a condition on the marginal utility of consumption C1 that depends neither on C2 nor on L
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Microeconomics A Contemporary Introduction
Authors: William A. McEachern
9th edition
978-0538453714, 538453710, 978-1111415921
