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Maren has the utilityfunction U(c1,c2)=C1^a*C2^1-a, where 0
1) Maren has income m1 and m2 in respectively periode 1 and periode 2. Order Marens`budgetrestrain (in present value)
Let a=0,3
2) Find Marens consumption in the two periods ( as a function of m1,m2 and r)3) If the interest rises, how will Maren chanhe her consumption in each of the two periodes
Suppose that instead of maximizing profit, the firm wants to maximize total revenue. Using algebra determine the optimal output, price, profit and revenue for the firm.
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Johnston production is the price taker which utilizes this cost structure in the short run:
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