There are two periods, time 1 and time 2. Assume that the market rate of interest is 10%. Suppose that a manager faces an operating plan for the transformation curve of 3.3K₁ + K₂ = 22 where K₁ is funds sold and utilised in time 1 and K₂ is funds sold and utilised in time 2.
a. Solve the manager's maximization problem.
b. Graphically show the solution you obtain for part a.
