Question

A worker views leisure and income as “goods” and has an opportunity to work at an hourly wage of $10 per hour.
a. Illustrate the worker’s opportunity set in a given 24-hour period.
b. Suppose the worker is always willing to give up $12 dollars of income for each hour of leisure. Do her preferences exhibit a diminishing marginal rate of substitution? How many hours per day will she choose to work?



Sales5
Views999
Comments1
  • CreatedNovember 15, 2011
  • Files Included
Post your question
5000