Adam Sandler has a utility function U(C, L) = C1/3L1/2. The wages now available to him are $9/hr. Non-wage income in royalties are $6 a day.
a) Find the MUL and MUC.
b) Find the MRS for Leisure to Consumption to find the optimal ratio of Leisure to Consumption.
c) Write out and draw the Budget Constraint for Adam Sandler, assuming he has 24 in which he can work.
d) Find the optimal amount of L and C. (Hint: It may be easiest to use the two equations from parts b. and c.)