CEC 201-Microeconomics notes 2020 (Compatibility Mode] Microsoft PowerPoint (Product Activation FamtionsSide ShowReviewViewIA Text Direction|A^|ラ|ミ.m.一青奇Align Text-AL1令4凸ALL9abe AV. Aa-| A.|E喜州Convert to SmartArtFontParagraphCont...• Consumers satisfaction depends only on his inconand leisure• Problem is to max U=u(L,Y)Subject to time constraint Y=w(24-L)SolutionSet lagrangian equation Z=u(L,Y) - ^ (Y-w(24-L)• 1st order conditions for maximization requires:o dZ/dL =%3Do DZ/dY =o DZ/d% =%3D• 2nd order conditions for maximization requires• Assignmente Paf5f6 )f7f8f9f10 |米f11&8.578.Infinix HOT 10Y5

We are going to answer this question stepwise as no U(L,,Y) function provided to get the exact form…

• Consumers satisfaction depends only on his incor and leisure • Problem is to max U=u(L,Y) Subject to time constraint Y=w(24-L) • Solution Set lagrangian equation Z=u(L,Y) - 1 (Y-w(24-L) • 1st order conditions for maximization requires: o dZ/dL = o DZ/dY = o DZ/dh = 2nd order conditions for maximization requires Assignment

• Consumers satisfaction depends only on his incor and leisure • Problem is to max U=u(L,Y) Subject to time constraint Y=w(24-L) • Solution Set lagrangian equation Z=u(L,Y) - 1 (Y-w(24-L) • 1st order conditions for maximization requires: o dZ/dL = o DZ/dY = o DZ/dh = 2nd order conditions for maximization requires Assignment

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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