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Utility Maximization

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Explain the difference between utility maximization from the consumption of a free good versus a good that is not free.

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Solution Summary

Explain the difference between utility maximization from the consumption of a free good versus a good that is not free.

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The difference is that when a good is free there is no budget constraint. You can have as much of it as you want.

If you were going to think of a ...

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