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Utility Maximization: Perfect Complements

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Iris Franz

11.8K subscribers

Fri, 19 Apr 2019 00:00:00 GMT
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optimal consumption bundle

utility maximization

perfect complements

If we always consume alpha units of good 1 with 1 unit of good 2 (say, 2 spoons of sugar with one cup of coffee), then given the budget, what is the optimal of good 1 and good 2 purchased?

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