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Consider the standard labor-leisure choice model. Consumer gets utility from consumption (C) and leisure (L). She has H total hours. She works NS hours and

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Consider the standard labor-leisure choice model. Consumer gets utility from consumption (C) and leisure (L). She has H total hours. She works NS hours and receives the hourly wage, w. She has some non-labor income ir and pays lump-sum tax T. Further suppose (IT - T) > 0. The shape of utility function is downward-sloping and bowed-in towards the origin (the standard U-shaped case just like a cobb-douglas function) If this consumer decides to NOT WORK AT ALL, then it must be the case that O A. [MRSL, C| S |w| O B. [MRSL,C| = |w| O C. MUL = MUC O D. [MRSL, C| 2 |wl O E. None of above

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