Assume that the utility function is U(l, c) = 0.6 ln(l) + 0.4 ln(c), with the same values of T, Y, and p_c as in problem 1 above. The individual receives a wage offer of w = 3.

Would she accept the wage offer? Why?

What if the firm offers a "straight time" wage of 3, but offers the possibility of overtime pay as well. In particular, the firm pays 1.5 times the base wage of 3 in excess of 8 hours. Then the wage paid by the firm is a function of the hours choice of the individual, with the individuals labor earnings given by 3 times h if h lessthanorequalto 8 3 times 8 + 4.5 times (h - 8) if h > 8. Would the individual accept the job in this case? If so, how many hours would they work? If not, why not?