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Assume an individual has a utility function of this form U(C, L) = 16 + 8(C x L) This utility function implies that the individual's
Assume an individual has a utility function of this form
U(C, L) = 16 + 8(CxL)
This utility function implies that the individual's marginal utility of leisure is 8C and her marginal utility of consumption is 8L. The individual has an endowment of V=$320 in non-labour income and T = 16 hours to either work (h) or use for leisure (L). Assume that the price of each unit of consumption good p=$1 and the wage rate for each hour of work w=$24.
A) Find the reservation wage of this individual?
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