Let u : R 2 +! R be a continuously differentiable utility function satisfying the usual assumptions,
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Question:
Let u : R 2 +! R be a continuously differentiable utility function satisfying the usual assumptions, and let f : R 2 +! R be a monotonic transformation of u: Consider the consumer problem of maximizing utility subject to the budget constraint. Show that the transformation f = f(u(x)) gives the same solution as u(x): Assume an interior solution.
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