Mary earns a weekly salary of M dollars per week in a normal 9-to-5 job. On...

 

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Mary earns a weekly salary of M dollars per week in a normal 9-to-5 job. On weekends, however, she has R-10 hours per weekend in which she can choose to spend in leisure (R) or to work as an assistant earning w- 1000 dollars per hour. The amount she chooses to work, L, is equal to 10-R. Her utility function over leisure and consumption (C, measured in dollars) is u(R,C) = RC. How much will Mary work, depending on the value of M? In other words, what is L-(M)? Illustrate your answer in two consumption-leisure diagrams, one illustrating the case M- 6000, and the other illustrating the case M- 12000. (The vertical axes below is in thousands of dollars.) In each diagram, show her budget line, her optimal consumption bundle, and the indifference curve passing through her optimal bundle 22 C 22 21 20 19 18 21 20 19 18 17 17 16 16 15 15 14 14 13 12 13 12 11 11 10 10 9 0 2345678910 R OF 345 8 9 10 Mary earns a weekly salary of M dollars per week in a normal 9-to-5 job. On weekends, however, she has R-10 hours per weekend in which she can choose to spend in leisure (R) or to work as an assistant earning w- 1000 dollars per hour. The amount she chooses to work, L, is equal to 10-R. Her utility function over leisure and consumption (C, measured in dollars) is u(R,C) = RC. How much will Mary work, depending on the value of M? In other words, what is L-(M)? Illustrate your answer in two consumption-leisure diagrams, one illustrating the case M- 6000, and the other illustrating the case M- 12000. (The vertical axes below is in thousands of dollars.) In each diagram, show her budget line, her optimal consumption bundle, and the indifference curve passing through her optimal bundle 22 C 22 21 20 19 18 21 20 19 18 17 17 16 16 15 15 14 14 13 12 13 12 11 11 10 10 9 0 2345678910 R OF 345 8 9 10