Q.50 Suppose that each individual participating in the bakers labor market has 12 hours available in the day to be allocated between work and leisure. Each individual evaluates the marginal benefit of leisure according to:

Bml (n) = 7010n

where n is the number of hours allocated to leisure.

Let w denote the wage rate and Lo (w) the number of hours allocated to work. What is the labor supply function of each individual?

At a balanced labor market, how many hours of work will each bakery hire?