Charlie and Larry both face the same budget line for consumption and leisure. At every possible consumption-leisure

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Charlie and Larry both face the same budget line for consumption and leisure. At every possible consumption-leisure bundle on the budget line, Charlie always requires marginally more leisure than Larry in order to be equally happy when asked to forego a dollar of consumption. Using a standard budget line, graph several indifference curves and the optimal consumption-leisure bundle for both people. Which person optimally chooses more consumption? Which feature of indifference curves guarantees this result?

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Labor Economics

ISBN: 9781260565522

8th Edition

Authors: George Borjas

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