Question: Suppose consumer utility function for the one-period model is given by U(c,l)=c+Bl where w is greater that B which is greater than 0. profit=0 and

Suppose consumer utility function for the one-period model is given by U(c,l)=c+Bl

where w is greater that B which is greater than 0. profit=0 and T=0

(a) What assumptions about the utility function are violated by this utility function.

(b) Write down consumer maximization problem

(c) Solve for equilibrium c and l given w. Graphically illustrate the equilibrium

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