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Waldo's utility function is defined by u ( x 1 , x 2 ) = x 1 x 2 . Find Waldo's optimal consumption of
Waldo's utility function is defined by u(x1, x2) = x1x2. Find Waldo's optimal consumption of x1and x2subject to the constraints that he cannot spend more than w on the two goods, and his consumption of x1must be greater or equal to some constant a (Make sure to check for corner solutions, by presenting two conditions:1) the constraint is met and 2) the constraint is not met.
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