Question
The utility function from leisure (L) and consumption (C) of Worker is given by: (, ) = .8 .2 . The respective marginal utilities are:
The utility function from leisure (L) and consumption (C) of Worker is given by: (, ) = .8 .2 . The respective marginal utilities are: = 0.8 .2 .2 , and = 0.2 .8 .8 . Worker has 24 hours to allocate between leisure and work. What is the labor supply of worker (hours of work as a function of wage) if its nonlabor income is:
a. R=5
b. R=125
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Managerial Economics And Financial Analysis
Authors: M.S. Bhat, A.V. Rau
1st Edition
9352300211, 978-9352300211
