Mathematics for Economists

Cake eating problem

(^1) The utility function is twice continuously di§erentiable onx> 0.
(^2) u^0 (c)> 0 .Increasing utility.
(^3) u^00 (c)< 0 .Strictly concave utility.
(^4) limc& 0 u^0 (c)=∞.Excludes corner solutions. ( Inada condition.)