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

Calculation of Optimum Combination of Consumption and Leisure

byHomework Help Classof1

Kobo ebook | May 23, 2013

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"Mike’s utility of consumption and leisure is U(C, L) =C*L, so that his marginal rate of substitution is C/L. There are 168 hours in the week and he earns $10 an hour.
a) What is his optimal combination of C and L?
b) If the government starts a welfare policy that pays B to all non workers and 0 to all workers, at what value of B will Mike opt out of the labor force and go on welfare?
"

Title:Calculation of Optimum Combination of Consumption and LeisureFormat:Kobo ebookPublished:May 23, 2013Publisher:Classof1Language:English

The following ISBNs are associated with this title:

ISBN:9990005743570

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