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Situation 1 : Suppose that a person produces their own consumption good, G, using a production function G=5L, where L is the amount of labour
Situation 1 : Suppose that a person produces their own consumption good, G, using a production function G=5L, where L is the amount of labour time used. The person has 24 units of labor time available to them. Free time, denoted F, is the amount of time not used for labour.
Situation 2: Suppose, now, that the production function becomes G= 6L
- Draw an indifference curve diagram showing the possibility that the person chooses exactly the same amount of free time for the cases of G=5L and G=6L.
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