1.4 10c44 is the utility function of Fredvick9 Sales executive at Barclays who maximizesuti lity by combining Leisure (L) with a maketbasket of consumptive goods (c)9 If tredrick does not earn any non -labair income(vestimate his labour supply function in temo ofI,P and w.WhereP= price, T = Total timewagerate.b) Calculate his reservation wage if T= 24 and P= ICalculate his oLon wage elasticity of labour supplyequilibrium-in

We are going to maximise the utility function after substituting for consumption function and then…

1.4= 10C4L4 is the utility function of Fredvick 9 Sales executive at Barclays who maximizes %3D uti lity by combining Leisure (L) with a maket basket of consumptive goods (c) 9 If tredrick does not earn any non-labair incomed estimate his Iabour supply function in tems of I,P and w. where P= price, T= Total time wage rate. b) Calculate his reservation wage if ī = 24 Gnd P = Calculate his oon wape elasticity of labour Supply in equilibrium.

1.4= 10C4L4 is the utility function of Fredvick 9 Sales executive at Barclays who maximizes %3D uti lity by combining Leisure (L) with a maket basket of consumptive goods (c) 9 If tredrick does not earn any non-labair incomed estimate his Iabour supply function in tems of I,P and w. where P= price, T= Total time wage rate. b) Calculate his reservation wage if ī = 24 Gnd P = Calculate his oon wape elasticity of labour Supply in equilibrium.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter16: Labor Markets

Section: Chapter Questions

Problem 16.10P

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Suppose Jenny has 16 hours per day to allocate between work and leisure and she earns a wage rate of $25 per hour. If at the utility-maximizing level of employment (1.e., MRSYL= w), Jenny's MUL is 20 utils, what is her MUy? !3! O A. Cannot be determined with the information provided. O B. 0.8 utils O C. 1.25 utils O D. 500 utils
Suppose Jenny has 16 hours per day to allocate between work and leisure and she earns a wage rate of $25 per hour. If at the utility-maximizing level of employment (i.e., MRSy; = w), Jenny's MUy is 20 utils, what is her MUl? O A. 1.25 utils O B. 0.8 utils O C. 500 utils O D. Cannot be determined with the information provided.
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