Calculation of MRS and Optimum Combination of Consumption and Leisure by Homework Help Classof1

Calculation of MRS and Optimum Combination of Consumption and Leisure

byHomework Help Classof1

Kobo ebook | May 22, 2013

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"Shelly’s preference for consumption and leisure are:
U(C, L) = (C-200)*(L-80)
This implies that Shelley’s marginal utility of leisure is C-200, and her margin al utility of consumption is L-80. There are 168 hours available in the week. She also receives $320 worth of welfare benefits regardless of how much she works.
a) Graph her budget constraint.
b) What is her marginal rate of substitution when L = 100 and she is on the budget line?
c) What is her reservation wage?
d) What is her optimal combination of C and L?
"

Title:Calculation of MRS and Optimum Combination of Consumption and LeisureFormat:Kobo ebookPublished:May 22, 2013Publisher:Classof1Language:English

The following ISBNs are associated with this title:

ISBN:9990006527292

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