In the theory of individual labor Supply, it is assumed that an individual derives utility from...

 

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In the theory of individual labor Supply, it is assumed that an individual derives utility from both income, which is earned through work, leisure Incore, I is determined by the number of hours worked (L), multiplied by the hourly wage rate (w), so that I=WL, Assume that in each day, a total number of 24 hours is available for either work (L) or leisure (R) such that R+L=24 and the hourly wage 95 4 Jollas. The individuals labore-leisure utility function UCI, R) = GIR² Using the Lagrangian Multiplier. Medhod, determine how individával will balance labour on leisure In order to maximize his/her utility check if the second order condition is satisfied. In the theory of individual labor Supply, it is assumed that an individual derives utility from both income, which is earned through work, leisure Incore, I is determined by the number of hours worked (L), multiplied by the hourly wage rate (w), so that I=WL, Assume that in each day, a total number of 24 hours is available for either work (L) or leisure (R) such that R+L=24 and the hourly wage 95 4 Jollas. The individuals labore-leisure utility function UCI, R) = GIR² Using the Lagrangian Multiplier. Medhod, determine how individával will balance labour on leisure In order to maximize his/her utility check if the second order condition is satisfied.