1. -- ) and leisure ( L), U = CL². The wage rate is $20 per hour, the price of consumption is $10 per unit, and the consumer's non-labor income is $60. The time endowment of the consumer is 24 hours. I Consider a consumer who has the following utility function of consumption (C (1).( ) What's the utility-maximizing choice of consumption and leisure? (2).( Show that at that choice, the marginal rate of substitution between consumption and leisure is equal to the real wage.

1. -- ) and leisure ( L), U = CL². The wage rate is $20 per hour, the price of consumption is $10 per unit, and the consumer's non-labor income is $60. The time endowment of the consumer is 24 hours. I Consider a consumer who has the following utility function of consumption (C (1).( ) What's the utility-maximizing choice of consumption and leisure? (2).( Show that at that choice, the marginal rate of substitution between consumption and leisure is equal to the real wage.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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