Hi, I need help with part C. Thank you. 6. (See week 5 Autumn Term) Assume you can work as manyhours you wish at £12 per hour (net of tax). If you do not work,you have no income. You have no ability to borrow or lend, soyour consumption, c, is simply equal to your income.a) Derive and plot the feasible set, between daily values ofconsumption c, and "leisure", I. Label the values at the intercepts (thepoints where the feasible frontier cuts the two axes).b) Assume that your optimal choice of consumption and leisure is towork 8 hours per day. Illustrate this choice diagrammatically using thefeasible set and indifference curves.c) Use indifference curves and the feasible set to show why, giventhe properties of the optimal choice inwork, say, 10, or 6 hours per day. (continued on next slide)b), it is not optimal to

The worker maximizes by taking 16 hours of leisure and 96 pounds worth of consumption. If instead he…

Answered: Hi, I need help with part C. Thank you.

Business

Economics

Hi, I need help with part C. Thank you.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Hi, I need help with part C. Thank you.

6. (See week 5 Autumn Term) Assume you can work as many
hours you wish at £12 per hour (net of tax). If you do not work,
you have no income. You have no ability to borrow or lend, so
your consumption, c, is simply equal to your income.
a) Derive and plot the feasible set, between daily values of
consumption c, and "leisure", I. Label the values at the intercepts (the
points where the feasible frontier cuts the two axes).
b) Assume that your optimal choice of consumption and leisure is to
work 8 hours per day. Illustrate this choice diagrammatically using the
feasible set and indifference curves.
c) Use indifference curves and the feasible set to show why, given
the properties of the optimal choice in
work, say, 10, or 6 hours per day. (continued on next slide)
b), it is not optimal to

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