Corner Solutions in Utility Maximization | Non-Standard Consumer Choice Cases in Microeconomics скачать в хорошем качестве

Corner Solutions in Utility Maximization | Non-Standard Consumer Choice Cases in Microeconomics

We discuss a non-standard case of utility maximization: the corner solution. Unlike the standard case in which the budget line is tangent to the indifference curve, here the consumer chooses to spend all income on one good and the standard condition for utility maximization need not be fulfilled. Content: What are corner solutions in utility maximization? Why may preferences imply that spending all income on one good is optimal? How do corner solutions differ from standard solutions The role of relative tastes and market exchange rates (prices) Intended for economics students, exam preparation, and anyone who wants to understand corner solutions related to consumer behavior in microeconomics. #consumerchoice #microeconomics #indifferencecurve