Question
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
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 labor.
- Compute the MRT in this situation, and find the opportunity cost of an hour of free time in terms of G.
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Business A Changing World
Authors: O. C. Ferrell, Geoffrey Hirt, Linda Ferrell
10th edition
1259179397, 978-1259179396
