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Patrice gets utility from leisure and consumption according to utility function: U(C, L) = C + ln(L). She receives wage w, is endowed with 24
Patrice gets utility from leisure and consumption according to utility function: U(C, L) = C + ln(L). She receives wage w, is endowed with 24 hours in a day, and consumption has a price of $1.
a)Draw her budget and time constraints when w = 1
b) At that wage, how much will she work?
c) Calculate her labor supply as a function of w. d Find the wage that maximizes her labor choice or explain why no such wage exists.
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