Maximizing C_t with Lagrangian: First Order Condition Explained

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SUMMARY

The discussion focuses on maximizing the utility function C_{t} under a given expenditure level using the Lagrangian method. The Lagrangian is formulated as L = \left(\int_{0}^{1}C_{t}(i)^{1-(1/\varepsilon)}di\right)^{\varepsilon/(\varepsilon-1)} - \lambda \left(\int_{0}^{1}P_{t}(i)C_{t}(i)di - Z_{t}\right). The first-order condition derived from this Lagrangian is C_{t}(i)^{-1/\varepsilon}C_{t}^{1/\varepsilon} = \lambda P_{t}(i) for all i in (0,1). The discussion also references the Euler-Lagrange equation, indicating its relevance in deriving optimal conditions.

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Charlotte87
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Homework Statement


Maximize C_{t} for any given expenditure level

\int_{0}^{1}P_{t}(i)C_{t}(i)di\equiv Z_{t}

The Attempt at a Solution



The Lagrangian is given by:
L = \left(\int_{0}^{1}C_{t}(i)^{1-(1/\varepsilon)}di\right)^{\varepsilon/(\varepsilon-1)} - \lambda \left(\int_{0}^{1}P_{t}(i)C_{t}(i)di - Z_{t}\right)

I know that the first order condition is

C_{t}(i)^{-1/\varepsilon}C_{t}^{1/\varepsilon} = \lambda P_{t}(i) for all i \in (0,1)

But I do not understand how they get to this answer. Can anyone help me?
 
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