Question
Akua gains utility from consumption C and leisure L. The most leisure she can consume in any given week is 110 hours. Her utility function
Akua gains utility from consumption C and leisure L. The most leisure she can consume in any given week is 110 hours. Her utility function is U (C, L) = C L. Akua receives 660 GHS each week from her great-grandmotherregardless of how much she works.
a. What will beAkua's marginal rate of substitution.
b. What will be Akua's reservation wage? (Explain in detail)
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International Trade
Authors: John McLaren
1st edition
0470408790, 978-0470408797
