4. Suppose instead that employees want a better worklife balanceI and use their preferences to decide how much leisure E and consumption C to enjoy. The equating of the marginal rates of substitution and transformation determines an equilibrium real wage to [as shown in Figure 5.3). Suppose preferences are such that this wage is w = 1/3, so for each workeryear employees are paid 2f3 of a widget. Suppose as well that there is no government expenditure or taxes. so G = T = D. Figure 5.2[b) is therefore the relevant diagrammatic interpretation. Obtain numerical answers to the following questions. {a} Solve for the number of workeryears N and the implied choice of leisure E. [Hint Use the expression for the marginal product of labour that you obtained in question 2, and recall from the marginal productivity condition of Assignment 4 that it must equal in.)