Uc1day-l4c231day-l13 where c is the amount of consumption


Suppose that a consumer has the utility function in the following form:
U(C,1day-L)=4C2/3(1day-L)1/3, where C is the amount of consumption and L is the number of hours worked. If the price for consumption is $9, the wage rate per hour is $6, initially the consumer had $162 and 24 hours as time endowment;
a) What is the meaning of the term ‘1day-L'?

Request for Solution File

Ask an Expert for Answer!!
Econometrics: Uc1day-l4c231day-l13 where c is the amount of consumption
Reference No:- TGS0580464

Expected delivery within 24 Hours