Question: Question 46 20 pts Suppose someone's utility can be calculated as a function of Leisure (L) and Consumption (C) such that U = 3LC. Suppose

Question 46 20 pts Suppose someone's utility can be calculated as a function of Leisure (L) and Consumption (C) such that U = 3LC. Suppose the total time available per day is 14 hours, the wage rate is $20, and nonlabor income is zero. a. Compute the optimal hours of leisure and labor, as well as the optimal amount of consumption and the resulting utility level. b. Suppose this individual now receives a nonlabor income per day equivalent to $45 per day. Show how this would change your answers in 'a! c. Suppose the person suffers a work-related injury such that he/she can no longer work and that there is a worker-compensation policy in places that fully compensates a worker for any lost income resulting from this injury. How would this change your answers in 'a'? d. What is the minimum percentage of income that could be replaced in this sort of policy to keep the worker at the same level of utility as before his injury? HTML Editor

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