Problem Set 3 Prof. Gene Chang (For Ph. D students, due on Dec. 28th in the class, or TA's office. For M.A. students, due on Dec. 26th, in the class or TA's office. Late turn-in may result in a penalty in the grade) 1. Kland is a Robinson Crusoe type economy. Robinson, as the consumer and the owner of the firm, has the utility function U(x,) =aIn x+ BInI, where is leisure. Robinson's endowment
