4. Suppose instead that employees want a better worklife balanceI and use their preferences to decide how much leisure f and mnsumption C to enjoy. The equating of the marginal rates of substitution and transformation determines an equilibrium real wage w [as shown in Figure 5.3]. Suppose preferences are such that this wage is w = 2,33. so for each workeryear employees are paid 2K3 of a widget. Suppose as well that there is no government expenditure or taxes, so G = T = I}. 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 f. (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.) -.-.-. ._ . .. . . . . -.- \\H