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Problem 1 Suppose a single parent has the following utility function: U-20 in C+10 In L. The single parent is eligible for th
Refer to Problem 1 to answer this question Solve the constrained utility optimization problem. The single parent maximizes th
QUESTION 23 Refer to Problem 1 to answer this question The optimality condition is: -400/(-19000-20L)+10/L=0 -400/(41000-20L)
QUESTION 24 Refer to Problem 1 to answer this question The optimal level of leisure is: L=700 L=683.33 L=7000 O L=650 O
QUESTION 25 Refer to Problem 1 to answer this question After finding the optimal level of leisure, to find the optimal level
QUESTION 26 Refer to Problem 1 to answer this question The ultimate purpose for solving this kind of problem is to: Show that
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Answer #1

i. The budget constraint of the strgle parent (= (2000-L)* 20 + 1000 - 50% (2000-1]x20 2. The utility function: + 10 mL u= ba30L 21000 i. TOO 5. The optimal con sumption sulestituting L=700 in calculated by in budget constraint 6. This problem shows

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