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26-05-2023
Business

Answered

There are two periods, time 1 and time 2. Assume that the market rate of interest is 10%.
Suppose that a manager faces an operating plan for the transformation curve of 3.3K₁ + K₂ =
22 where K₁ is funds sold and utilised in time I and K2 is funds sold and utilised in time 2.

a. Solve the manager's maximization problem.
b. Graphically show the solution you obtain for part a.

Answer :

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