You received a significant amount of donation D>0 and would like to use this money to run a charityprogram. Assume that you want the charity program to run for T periods, and you would like tospread the spending overtime. Let st be the spending for period t. Denote di the funding availablefrom the beginning of time t (do = D). The utility (happiness) you receive by helping others (spendingSt) can be summarized asB'u(st)t=0where 3 is the discount factor.(3) Assume T = 3. Let u(s) = ln(s), solve the optimal s; for each period.

Utility refers to the total satisfaction that a consumer gets by consuming the units of a commodity.…

You received a significant amount of donation D>0 and would like to use this money to run a charity program. Assume that you want the charity program to run for T periods, and you would like to spread the spending overtime. Let s, be the spending for period t. Denote de the funding available from the beginning of time t (do = D). The utility (happiness) you receive by helping others (spending st) can be summarized as T EB'u(st) t=0

You received a significant amount of donation D>0 and would like to use this money to run a charity program. Assume that you want the charity program to run for T periods, and you would like to spread the spending overtime. Let s, be the spending for period t. Denote de the funding available from the beginning of time t (do = D). The utility (happiness) you receive by helping others (spending st) can be summarized as T EB'u(st) t=0

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter3: Preferences And Utility

Section: Chapter Questions

Problem 3.9P

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