Trey works as a waiter for Puff & Stuff catering for a wage of w 11. In addition to his%3Dlabor income from waiting, Trey makes supplemental income with his householdproduction time by streaming video games on Twitch. He doesn't have any unearnedincome (V=0). Trey's preferences over consumption and household production aregiven by the utility function below:u (H, C) = 2\H + VCAssume Trey has 16 hours each day to split between household production andconsumption, if he spends 10% of his time at home streaming and earns an hourlyrate of P = 7, what will be his optimal allocation of household production? (hint:assume that Trey's utility-max condition remains unchanged and his supplemental incomewill only impact his budget constraint)

U(H,C) = 2 (H)1/2 + (C)1/2 Where, H = Hours spent on household production C = Hours…

Trey works as a waiter for Puff & Stuff catering for a wage of w = 11. In addition to his %3D labor income from waiting, Trey makes supplemental income with his household production time by streaming video games on Twitch. He doesn't have any unearned income (V-0). Trey's preferences over consumption and household production are given by the utility function below: u (H, C) = 2\H + VT %3D Assume Trey has 16 hours each day to split between household production and consumption, if he spends 10% of his time at home streaming and earns an hourly rate of P 7, what will be his optimal allocation of household production? (hint: assume that Trey's utility-max condition remains unchanged and his supplemental income will only impact his budget constraint)

Trey works as a waiter for Puff & Stuff catering for a wage of w = 11. In addition to his %3D labor income from waiting, Trey makes supplemental income with his household production time by streaming video games on Twitch. He doesn't have any unearned income (V-0). Trey's preferences over consumption and household production are given by the utility function below: u (H, C) = 2\H + VT %3D Assume Trey has 16 hours each day to split between household production and consumption, if he spends 10% of his time at home streaming and earns an hourly rate of P 7, what will be his optimal allocation of household production? (hint: assume that Trey's utility-max condition remains unchanged and his supplemental income will only impact his budget constraint)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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