Question: A worker who is a normal type can complete an amount of work equal to 20h h2 if she puts in h hours of work
A worker who is a "normal type" can complete an amount of work equal to 20h h2 if she puts in h hours of work a day. Her cost of staying h hours in the office is 4h. What is the optimal number of hours she should stay in the office if her utility is given by the amount of work completed less the total cost of staying in the office? A worker who is a "workaholic type" can also complete an amount of work equal to 20h h2 if she puts in h hours of work, but her cost of staying h hours in the office is only 2h. What is the optimal number of hours she should stay in the office? [8 marks
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