Question
Mark likes to eat pizzas and watch TV. In order to buy pizzas, he is looking for a job that pays him a wage of
Mark likes to eat pizzas and watch TV. In order to buy pizzas, he is looking for a job that pays him a wage of $wper hour forLhours of labor. Since he can only work a maximum of 15 hours a day (Mark needs 9 hours of sleep to function) and he cannot watch TV while working, he needs to decide how to allocate his time between working and watching TV during the time when he is awake, which is always a tough decision. Specifically, Mark's utility from pizzas and TV is:
U (P,T) = 2ln (P) + ln (T)
where Pis the number of pizzas andTis the number of hours he spends on TV. (Assume bothPandTare infinitely divisible.)
Suppose a pizza costs 10 dollars. What will be Mark's daily budget constraint over pizzas and TV as a function ofP,T, andw?
a. 10P + 15w + wT = 0
b. none of these options
c. 10P + 10w = wL + 5w
d. 10P + wT = 15
e. 10P + 15w = wT
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started