Question: please help-- anything is appreciated :) 3. Consider the baseline static individual model of labor supply extended to allow for fixed money costs, CM, and

please help-- anything is appreciated :)

please help-- anything is appreciated :) 3. Consider the baseline static individual

3. Consider the baseline static individual model of labor supply extended to allow for fixed money costs, CM, and fixed time costs, CT, of working. a. Find the first order condition that holds for an individual who chooses to work positive hours. Does it differ from the first order condition in the baseline model without fixed costs of working? Interpret this result. b. Find the condition that defines the individual's reservation wage. Does it differ from the reservation wage condition in the baseline model without fixed costs of working? Interpret this result. c. Perform a comparative statics analysis using the condition in (b) to show how changes in CM and CT affect the reservation wage. (Hint: A diagram might provide helpful intuition.)

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