Carol and Brent are a two-person household. Carol's market hourly wage is $50, but Carol can also produce $30 of household production each hour. Brent's market hourly wage is $40, but Brent can also produce $20 of household production each hour. This household chooses work schedules to maximize utility. When it does this, which of the following cannot occur? a. Carol specializes in marketplace work, while Brent splits time between marketplace and household work.
Carol and Brent are a two-person household. Carol's market hourly wage is $50, but Carol can also produce $30 of household production each hour. Brent's market hourly wage is $40, but Brent can also produce $20 of household production each hour. This household chooses work schedules to maximize utility. When it does this, which of the following cannot occur? a. Carol specializes in marketplace work, while Brent splits time between marketplace and household work.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Carol and Brent are a two-person household. Carol's market hourly wage is $50, but Carol can also produce $30 of household production each hour. Brent's market hourly wage is $40, but Brent can also produce $20 of household production each hour. This household chooses work schedules to maximize utility. When it does this, which of the following cannot occur?
a. Carol specializes in marketplace work, while Brent splits time between marketplace and household work.
b. Brent specializes in marketplace work, while Carol splits time between marketplace and household work.
c. Brent specializes in marketplace work while Carol specializes in household production.
d. Both specialize in marketplace work and no one engages in household production.
e. All of these can occur.
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