Ed is a substitute lecturer. Every day he chooses between how many hours to work (denoted by L) and how many hours to rest (denoted by h = 24 - L). Ed earns $13.50 for every hour he works. Ed earns a wage income $13.50*L which he spends on all other consumption goods. The price of all other goods has been normalized to 1. Ed's utility is: U(c,h) = 0.39*c*h - (h - 21)2. How many hours does Ed work?

Ed is a substitute lecturer. Every day he chooses between how many hours to work (denoted by L) and how many hours to rest (denoted by h = 24 - L). Ed earns $13.50 for every hour he works. Ed earns a wage income $13.50L which he spends on all other consumption goods. The price of all other goods has been normalized to 1. Ed's utility is: U(c,h) = 0.39c*h - (h - 21)2. How many hours does Ed work?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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