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Suppose a worker's utility function be U(C, L) = C2 (Ln )2, where C denotes consumption and L leisure. Let T denote time available to
Suppose a worker's utility function be U(C, L) = C2 (Ln )2, where C denotes consumption and L leisure. Let T denote time available to split between leisure and work, w denotes the wage rate, and V = 0 denotes non-labor income (as in the lecture). Suppose workers are also subject to a labor-income tax rate of
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