Kai has heard of your fame as an economist who specializes in consumer behavior and optimizing people's
Fantastic news! We've Found the answer you've been seeking!
Question:
u(i, b) = i^0.6*b^0.4
a) What advice would you give to Kai? Is he maximizing his well-being? Explain
to him why he is/isn't achieving his best and improvements he can/can't make.
b) Graph the situation showing both the current consumption bundle and his optimal bundle.
Related Book For
Concepts In Federal Taxation
ISBN: 9780324379556
19th Edition
Authors: Kevin E. Murphy, Mark Higgins, Tonya K. Flesher
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