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2. Consider a worker who is paid a wage w per hour. Her preferences over consumption (in dollars) and hours worked are given by u(c,
2. Consider a worker who is paid a wage w per hour. Her preferences over consumption (in dollars) and hours worked are given by u(c, h) = c - ha. (Note that we have defined the worker's utility in terms of hours worked rather than hours of leisure). The worker faces a constant marginal tax rate t on her earnings, so her net after-tax wage is w(1 t). Assume that the worker cannot work more than 16 hours per day. Thus, she chooses hours worked to solve max c-h2 s.t. c
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