題組內容

1. A consumer's consumption-utility for a two-period horizon is \( U = C_1 C_2^{0.6} \); his income stream is \( y_1 = 940, y_2 = 540 \); and the market rate of interest is 8%.

(1) Determine values for \( C_1 \) and \( C_2 \) that maximize his utility. (10%)