Question
10. A worker views leisure and income as goods and has an opportunity to work at an hourly wage of $16 an hour. a.
10. A worker views leisure and income as " goods" and has an opportunity to work at an hourly wage of $16 an hour.
a. Illustrate the worker's opportunity set in a given 24-hour period.
b. Suppose the worker is always willing to give up $10 of income for each hour of leisure.Do her preferences exhibit a dimensioning marginal rate of substitution? How many hours per day will she choose to work?
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Managerial Economics A Problem Solving Approach
Authors: Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
4th edition
1305259335, 978-1305259331
