Suppose the consumer has preferences of type of Leontief, where c = 90 ℓ. Also, suppose...
Suppose the consumer has preferences of type of Leontief, where
c = 90 ℓ. Also, suppose that firms make no profit, there are not
taxes, and the equilibrium real wage is 10. The optimal choice of
leisure (
ℓ)
is
a.0.9
b.9
c.1/9
d.0.1
Homework Answers
C=90l
Wage =10
The optimum choice of leisure is 0.1
l+L=T
90l+10=T
l=10/90
=0.1
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Suppose the consumer has preferences of type of Leontief, where
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