Question: Robinson has preferences described by the utility function u(c) = log c, where c denotes consumption. Assume that the total number of available hours is

Robinson has preferences described by the utility function u(c) = log c, where c denotes consumption. Assume that the total number of available hours is equal to one so that l h = 1, where l and h denote leisure and hours of work, respectively. The production function is y = Ah , with 0 < < 1. (a) What is the optimal choice of hours worked, h ? (b) What happens to h if A rises? (c) What happens to h if we reduce the value of

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