Consider an individual...

2. Consider an individual with the following utility function: mg L) = c-5L-5, where c is quantity of consumption and L is hours of leisure in a week. (The marginal utilities of leisure and consumption are l/2*(C/L)1/2 and 1/2*(L/C)1/2 respectively.) Total time available to allocate between leisure and consumption is 112 hours per week. The individual has nonlabor income of $100 per week and an hourly wage of $20. a. What is the marginal rate of substitution of leisure for consumption? b. Write down the equation for this individual's budget constraint. Graph it. c. Solve for this individual's optimal level of consumption, leisure, and hours of work