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Derive algebraic expressions for the optimalleisure

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Reference no: EM13972542

Given the utility function u(c, l) = α log(c) + (1 - α) log(l) and the assumption that the only source of income of the representative consumer is her labor income. In addition, suppose she pays a consumptiontax θ ∈ [0, 1) for every unit of good consumed. Derive algebraic expressions for the optimalleisure and consumption

Reference no: EM13972542

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