Economics university question. Help please xWatch this thread
C1= 240 (16,000 − C0)^0.5
where C0 denotes consumption at present, and C1 consumption in the future. Assume the interest rate (for borrowing and lending) is 20%. The investor's utility function, from which it is possible to derive his indifference curves, is defined as:
U(C0, C1) =C0C1
How much will the investor invest in production?
The options are: $16 000, $12 000, $10 000, $0