2.Use the following scenario to answer the questions below.

i) Fred has been voluntarily working overtime. At time and a half, he earns $30/hour. But he has felt tired, and has decided that an extra $30 is not worth it, compared to the free time lost. He would rather have more free time, even if it makes his finances a little tighter.

a. Why is the individual not behaving optimally?

b. How should he change his behavior so as to be better off?

c. Provide an optimality rule to describe the utility maximizing choice.