magicgeek5462 magicgeek5462
  • 27-05-2023
  • Business
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A consumer's consumption-utility function for a two-period horizon (periods 1 and 2) is u(C₁, C₂) = ᴄ1⁰.⁵ᴄ2⁰.⁵ the income stream is y₁ = 1000; y₂ = 1200 and the market rate of interest is 20%. Determine values for c₁ and c₂ that maximize the consumer's utility.

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