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It doesn’t matter how expensive of a TV you own: a TV is only as good as its picture settings. Head TV tester, Claudio Ciacci knows how to get a...
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Consider the consumer optimization problem discussed in class where the representative consumer's preferences are represented by the utility function:U(C,l) = ln(C) θln(l)The consumer's budget constraint is:C = wNs π - TThe consumer also faces the time constraint:l Ns = hThe notation is borrowed from the textbook.a) Maximize the consumer's utility function subject to the above 2 constraints (use the Lagrange method used in the class). Solve for consumption in terms of θ, h, w, π, and T
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