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When maximizing the utility function subject to budget constraint, does the value of the Lagrange multiplier...

When maximizing the utility function subject to budget constraint, does the value of the Lagrange multiplier (λ) equal the marginal utility of income? Justify your answer

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A function being maximized with a specific constraint is quite common in economy. Consumer theory of maximization of the function of utility deals with a certain amount of income for spending on the commodities. For maximizing the utility with the wealth constraints three commodities are considered.

Rahul Sunny answered 1 year ago
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