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blushskunk17Lv1
28 Sep 2019
We develop deep insight into the individual's psyche and find that her utility function has the following form: U (C, L)= (C-200)*(L-80). Implying a marginal utility of consumption MUC=(L-80) and a marginal utility of leisure of MUL=(C-200). Assume that she receives no gifts from family or friends (V=0). Assume further that there are 168 hours in the week (T=168) and that her market wage rate is a lowly $5 an hour. How many hours would the person choose to work?
We develop deep insight into the individual's psyche and find that her utility function has the following form: U (C, L)= (C-200)*(L-80). Implying a marginal utility of consumption MUC=(L-80) and a marginal utility of leisure of MUL=(C-200). Assume that she receives no gifts from family or friends (V=0). Assume further that there are 168 hours in the week (T=168) and that her market wage rate is a lowly $5 an hour. How many hours would the person choose to work?
Joshua StredderLv10
28 Sep 2019
