Question: Suppose a utility optimization problem is formulated as; Max U=f(9,92,... 9) Subject to :y = P.9, i=1 a). Use the problem above to derive

Suppose a utility optimization problem is formulated as; Max U=f(9,92,... 9) Subject

Suppose a utility optimization problem is formulated as; Max U=f(9,92,... 9) Subject to :y" = P.9, i=1 a). Use the problem above to derive the law of equi-marginal utility. (7marks) b). Outline the assumptions you would consider in deriving the law of equi- marginal utility. (4marks)

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