Another interesting kink in your utility function: you can deduct up to half of your income from your taxes through charitable giving. As far as I know, this represents an opportunity cost: each year I have the option to donate half of my income for that year to charity and only pay taxes on the remaining half, and that opportunity goes away if I don’t take it.
Another interesting kink in your utility function: you can deduct up to half of your income from your taxes through charitable giving. As far as I know, this represents an opportunity cost: each year I have the option to donate half of my income for that year to charity and only pay taxes on the remaining half, and that opportunity goes away if I don’t take it.