Question: Agent 1 has a log utility function (i.e., log(c), where c denotes consumption and it is a natural log). Suppose that Agent 1 only consumes

Agent 1 has a log utility function (i.e., log(c), where c

Agent 1 has a log utility function (i.e., log(c), where c denotes consumption and it is a natural log). Suppose that Agent 1 only consumes for two periods. He has two options for its consumption profile. The first option is (1,1), meaning that he consumes one unit of consumption good at period 1 and one unit of consumption good at period 2. The other option is (0.5,1.5). Which option does he prefer ? Show your work for the

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