Question

Can you explain how we get to a corner solution and how it's different from the interior solution? Can we have both?

Answer 1

It can be mentioned that the corner solution of a maximization problem is indeed a special solution where the quantity of one of the arguments in the maximization problem is actually zero. Interior solution is computer solution for the agent maximization problem where it is obtained by tangency the two curves which is an optimum location all in all. It can be mentioned that if the tangent is actually at the point where the argument is zero it is possible that one can have both