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Joahna Bartolome
on Dec 04, 2024

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The technique of constrained optimization can be used to describe:

A) the conditions that must hold if the consumer is maximizing utility.
B) the conditions that may prevent the consumer from maximizing utility.
C) the conditions that may lead to an increase or decrease in marginal utility.
D) the best use of a given amount of income.

Constrained Optimization

The process of finding the optimal solution or outcomes within given limitations or constraints.

Maximizing Utility

Refers to the economic principle where individuals or firms seek to get the highest level of satisfaction from their resources.

  • Explain the conditions under which a consumer is maximizing utility.
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Shiroi G?rudoDec 09, 2024
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