A. Illustrate the worker's opportunity set in a given 24-hour period. B. Suppose the worker is always willing to give up $11 dollars of income for each hour of leisure. Do her preferences exhibit a diminishing marginal rate of substitution? How many hours per day will she choose to work?

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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5) A worker views leisure and income as "goods" and has an opportunity to work at an hourly wage of $15
per hour.
A. Illustrate the worker's opportunity set in a given 24-hour period.
B. Suppose the worker is always willing to give up $11 dollars of income for each hour of leisure. Do her
preferences exhibit a diminishing marginal rate of substitution? How many hours per day will she choose
to work?
Transcribed Image Text:5) A worker views leisure and income as "goods" and has an opportunity to work at an hourly wage of $15 per hour. A. Illustrate the worker's opportunity set in a given 24-hour period. B. Suppose the worker is always willing to give up $11 dollars of income for each hour of leisure. Do her preferences exhibit a diminishing marginal rate of substitution? How many hours per day will she choose to work?
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