How many additional dollars of income would it take to make


Problem

The utility function of a worker is represented by U(C, L) = C X L. The marginal utility of leisure is then given by MUL = C and the marginal utility of consumption is given by MUc = L. Suppose that this person currently has a weekly income of $600 and enjoys 70 hours of leisure per week. How many additional dollars of income would it take to make a nonworker give up 10 hours of leisure time?

Request for Solution File

Ask an Expert for Answer!!
Microeconomics: How many additional dollars of income would it take to make
Reference No:- TGS02718944

Expected delivery within 24 Hours