Louisa works for a hedge fund company. Her wage rate is $40 per hour. She can work
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Question:
Louisa works for a hedge fund company. Her wage rate is $40 per hour. She can work up to 50 hours each week. The table below shows her utility from different levels of leisure and income. Louisa decided to increase her hours of work from 10 to 20 hours per week. As a result, her marginal utility gain from having more income and less leisure will now be:
Hours of Leisure | Total Utility from Leisure | Income | Total Utility from Income |
0 | 0 | 0 | 0 |
10 | 27 | 300 | 42 |
20 | 52 | 400 | 74 |
30 | 71 | 600 | 98 |
40 | 84 | 800 | 110 |
50 | 90 | 900 | 118 |
1200 | 122 | ||
1500 | 124 | ||
1600 | 126 | ||
2000 | 127 |
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