7. (LILO 2) a) Chika has calculated the marginal utility that she derives from her paid employment and from leisure. This is presented in ' Table 5.19. In her ideal world, where she could work as few or as many hours as she wished, how would she allocate her sixteen waking hours? (She does need to sleep.) Page 204 TABLE 5.19 Hours MU Paid Employment MU Leisure 100 80 90 75 80 70 70 65 60 60 O6 0 V Q UA WN 50 55 40 50 30 45 20 40 10 35 b) Unfortunately, Chika begins to realize that unless she gets an education she will not enjoy a high salary and therefore will not be able to afford more leisure time. She therefore decides to spend six hours each day studying (in addition to her eight hours of sleep). How will she now divide the remaining hours between work and leisure? Work: Leisure: 8. (LILO 2) Maria has $7 to spend on breakfast. Unfortunately, the snack bar in the building where she works has only three items: muffins at $1 each, soup at $1.50, and cappuccinos at $2 each. a) Given her total utility figures in L Table 5.20, complete the MU columns. b) How should she allocate her budget? Muffin(s): Soup: Cappuccino(s)