Show that the utility function u(c.l) = In(c) - (h-1)1+a 1+o where c is consumption,...

 

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Show that the utility function u(c.l) = In(c) – ô- (h-1)1+a 1+o where c is consumption, 1 is leisure, and 8 >0 and o>0 are constant, exhibits strictly positive but diminishing marginal utility in both c and I. Show that the utility function u(c.l) = In(c) – ô- (h-1)1+a 1+o where c is consumption, 1 is leisure, and 8 >0 and o>0 are constant, exhibits strictly positive but diminishing marginal utility in both c and I.

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