Question: You're trying to decide how much time to spend working, h. You like earning money from work, but you don't like working -- it is

You're trying to decide how much time to spend working, h. You like earning money from work, but you don't like working -- it is so boring! Your utility from work can be expressed by the following function:

()=ln

U(h)=blnh4ah

a and b are constant numbers.

(8) (i) How many hours worked would maximize your utility?

(4) (ii) Based on your answer in part i, if b increased, would you work more hours or fewer hours? What if a increased? Explain in words - no calculus is necessary for full marks.

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