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3. Assume there is a constant per unit opportunity cost of Consumption (call it Saving). If an individual wants to maximize his net utility (minus opportunity cost), set up the math problem he would solve. Use the utility function from problem 2.Utilit U(C) =-Ca, where C is consumption. y

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It is given that the opportunity cost of consumption is savings. Lets call it “S”. It means the per unit cost of consumpti

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