Hello,

Basic question, I am mature age student not fresh on the maths and need to double check something.

c_i=y_i + T(ybar - y_i) where

-T is between 0 and 1

-y_i is just a particular number for an individual, ybar is the average number for all individuals.

u_i(c_i) = log(c_i) (a utility function)

write the utility function in terms of y and T.

Do I simply substitute to have

u_i(c_i) = log [y_i + T(ybar - y_i)]

or is there some type of rule?

Second, find if there is a max point for the utility. f.o.c and s.o.c.... could you do that for me so i can check i do it right. Because when I do it I don't get a max, and there should be a max....