Problem related to linear utility function
Problem: Agent 1 has a linear utility function (i.e., u(c) = c). Agent 1 only consumes for the two periods. He has the consumption option (1,1) and (0.5,1.5). Which option does Agent 1 choose?
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Agent 1 has a linear utility function (i.e., u(c) = c). Agent 1 only consumes for the two periods. He has the consumption option (1,1) and (0.5,1.5).
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Describe a factor or event that would change a particular market (labor, financial, or a specific good or service) and argue how the market will respond.
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