8. (Continuing with the situation described in the preceding question.) Consider the economic model of an individual's labor-leisure choice with the following components: good w represents the hourly wage rate Y represents nonlabor income T represents total time available U(C, L) represents the individual's utility function MUC denotes the marginal utility of consumption MUL denotes the marginal utility of leisure Unless otherwise instructed, assume that consumption and leisure are normal goods. Whenever graphing the model, put C on the vertical axis and L on the horizontal axis. The individual maximizes his utility by choosing the optimal consumption bundle C*=90, L*=15, and H*=9. At this consumption bundle, MUC=4 and MUL=12. If p=2, what is w? 04 06 C represents units of the consumption good L represents hours of leisure H represents hours of paid work p represents the unit price of the consumption 8 10 O There is not enough information to determine w.

8. (Continuing with the situation described in the preceding question.) Consider the economic model of an individual's labor-leisure choice with the following components: good w represents the hourly wage rate Y represents nonlabor income T represents total time available U(C, L) represents the individual's utility function MUC denotes the marginal utility of consumption MUL denotes the marginal utility of leisure Unless otherwise instructed, assume that consumption and leisure are normal goods. Whenever graphing the model, put C on the vertical axis and L on the horizontal axis. The individual maximizes his utility by choosing the optimal consumption bundle C=90, L=15, and H*=9. At this consumption bundle, MUC=4 and MUL=12. If p=2, what is w? 04 06 C represents units of the consumption good L represents hours of leisure H represents hours of paid work p represents the unit price of the consumption 8 10 O There is not enough information to determine w.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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