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ch04 - Chapter 4 UTILITY MAXIMIZATION AND CHOICE 1 Our...

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1 Chapter 4 UTILITY MAXIMIZATION AND CHOICE
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2 Our Consumption Choices Our decisions can be divided in two parts We have to determine all available choices, given our income: BUDGET CONSTRAINT Of all the available choices we choose the one that we prefer: PREFERENCES, UTILITY FUNCTIONS, and INDIFFERENCE CURVES
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