Question: =+6.5. This exercise is regarding Example 6.1 (continued) in Section 6.3. (i) Show that the function (u) is maximized at u = c, and the

=+6.5. This exercise is regarding Example 6.1 (continued) in Section 6.3.

(i) Show that the function ψ(u) is maximized at u = √c, and the maximum is (1 + √c)−2.

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