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Equating MRS and the slope of the budget line to find the optimal consumption bundle that maximizes the utility. If you are reading Varian's textbook, treat a as c/(c+d), and 1-a as d/(c+d).
Answer the following questions based on the video lesson. All answers can be found in the video — no outside knowledge is required.
Apply the method from the video to find optimal consumption bundles using the Cobb-Douglas utility function. Show all algebraic steps; problems increase in difficulty.
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