Mary earns a weekly salary of M dollars per week in a normal 9-to-5 job. On weekends, however, she has R-10 hours per weekend in which she can choose to spend in leisure (R) or to work as an assistant earning w=1000 dollars per hour. The amount she chooses to work, L, is equal to 10-R. Her utility function over leisure and consumption (C, measured in dollars) is u(R,C) -RC. How much will Mary work, depending on the value of M? In other words, what is L-(M)? Illustrate your answer in two consumption-leisure diagrams, one illustrating the case M=6000, and the other illustrating the case M=12000. (The vertical axes below is in thousands of dollars.) In each diagram, show her budget line, her optimal consumption bundle, and the indifference curve passing through her optimal bundle 21 20 18 17 22 21 20 19 18 17 16 15 14 13 12 11 10 9 &999999 14 12 8 0 0 567X10R 7810 Mary earns a weekly salary of M dollars per week in a normal 9-to-5 job. On weekends, however, she has R-10 hours per weekend in which she can choose to spend in leisure (R) or to work as an assistant earning w=1000 dollars per hour. The amount she chooses to work, L, is equal to 10-R. Her utility function over leisure and consumption (C, measured in dollars) is u(R,C) -RC. How much will Mary work, depending on the value of M? In other words, what is L-(M)? Illustrate your answer in two consumption-leisure diagrams, one illustrating the case M=6000, and the other illustrating the case M=12000. (The vertical axes below is in thousands of dollars.) In each diagram, show her budget line, her optimal consumption bundle, and the indifference curve passing through her optimal bundle 21 20 18 17 22 21 20 19 18 17 16 15 14 13 12 11 10 9 &999999 14 12 8 0 0 567X10R 7810 Mary earns a weekly salary of M dollars per week in a normal 9-to-5 job. On weekends, however, she has R-10 hours per weekend in which she can choose to spend in leisure (R) or to work as an assistant earning w=1000 dollars per hour. The amount she chooses to work, L, is equal to 10-R. Her utility function over leisure and consumption (C, measured in dollars) is u(R,C) -RC. How much will Mary work, depending on the value of M? In other words, what is L-(M)? Illustrate your answer in two consumption-leisure diagrams, one illustrating the case M=6000, and the other illustrating the case M=12000. (The vertical axes below is in thousands of dollars.) In each diagram, show her budget line, her optimal consumption bundle, and the indifference curve passing through her optimal bundle 21 20 18 17 22 21 20 19 18 17 16 15 14 13 12 11 10 9 &999999 14 12 8 0 0 567X10R 7810 Mary earns a weekly salary of M dollars per week in a normal 9-to-5 job. On weekends, however, she has R-10 hours per weekend in which she can choose to spend in leisure (R) or to work as an assistant earning w=1000 dollars per hour. The amount she chooses to work, L, is equal to 10-R. Her utility function over leisure and consumption (C, measured in dollars) is u(R,C) -RC. How much will Mary work, depending on the value of M? In other words, what is L-(M)? Illustrate your answer in two consumption-leisure diagrams, one illustrating the case M=6000, and the other illustrating the case M=12000. (The vertical axes below is in thousands of dollars.) In each diagram, show her budget line, her optimal consumption bundle, and the indifference curve passing through her optimal bundle 21 20 18 17 22 21 20 19 18 17 16 15 14 13 12 11 10 9 &999999 14 12 8 0 0 567X10R 7810
