Frank gets utility from consumption (C) and leisure (L). His utility function is given by U=CL. The total time he has available per week to allocate between work (H) and leisure is 168 hours. Frank has non-labour income (independent of hours of work) of £630 per week.
(a) What is Frank's reservation wage (i.e. the wage that makes him indifferent between working and not working)?
(b) If the market wage is £5 per hour how many hours will Frank work per week?