The representative firm has technology described by a linear production function Y = 190N. Compared to...

 

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The representative firm has technology described by a linear production function Y = 190N. Compared to the previous question, labor productivity decreased. The representative household has preferences over consumption and leisure represented by the following utility function u(c, l) = c+18l. At the equilibrium, how big is the labor input? The representative firm has technology described by a linear production function Y = 190N. Compared to the previous question, labor productivity decreased. The representative household has preferences over consumption and leisure represented by the following utility function u(c, l) = c+18l. At the equilibrium, how big is the labor input?