Cleaning the house It is Sunday morning (t 5 0), and you are determined to accomplish two things today: cleaning the apartment and going to the movies. You can either clean during the morning (at t 5 0), and go to the movies during the afternoon (at t 5 1) or go to the movies during the morning (at t 5 0) and clean in the afternoon (at t 5 1). You hate cleaning: it only gives you a utility of 2. You love the movies: it gives you as much as 12. For the first two questions, assume that you discount the future exponen tially with d = 1/2. From the point of view of t = 0:

(a) What is the utility of cleaning first and going to the movies later?

(b) What is the utility of going to the movies first and cleaning later? For the last two questions, assume that you discount the future hyperboli cally with b = 1/3 and d = 1/2. From the point of view of t = 0:

(c) What is the utility of cleaning first and going to the movies later?

(d) What is the utility of going to the movies first and cleaning later?