The consumption preference function in an economy is defined as:
U(c, l) = A ln(c) + B ln(l)
There is a proportional tax on profits earned by consumers, the
consumer's budget constraint function is defined as: c = wN + (1 −
τ )π
The production function of the firm is defined as: Y = zKαN
1−α
1. What is the consumer's optional budget of consumption and
leisure as a function of f w, τ , π, A, B and...