Question: Harold s utility is given by U 3M 60V

Harold’s utility is given by U = 3M + 60V, where M is the dollar value of his annual consumption of the composite good and V takes the value 1 if he votes and 0 if he does not. Harold finances his consumption by working at a job that pays $30/ hr for as many hours as he chooses to work. In order to vote he must spend a total of 20 minutes traveling to and from the polling place, where he must stand in line before casting his ballot. If he regards his transit time and waiting time as neither more nor less unpleasant than working an equivalent amount of time at his job, how long must the line at the polls be before Harold will decide not to vote?

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  • CreatedDecember 12, 2014
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