ZuoTi.Pro
Question

Household supply - utility-maximizing worker

q1.png

A maximizing consumer has preferences for leisure \(\mathrm{Z}\) and consumption \(\mathrm{F}\) given by \(\mathrm{u}=\mathrm{Z}^{1 / 2} \mathrm{~F}^{1 / 2}\). She allocates 24 hours per day between leisure and labour. She has non-labour income of 24 dollars per day and is paid a wage of 4 dollars per hour. How many hours should she work? No diagram is required. Show your work.

college   economics   microeconomics   Household-Supply   Utility-Maximizing-Worker   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Request Professional Answer

Request Answer!

We need at least 9 more requests to produce the answer.

1 / 10 have requested this problem solution

The more requests, the faster the answer.

Request! (Login Required)

All students who have requested the answer will be notified once they are available.
Know the answer?
Add Answer to:
Household supply - utility-maximizing worker
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Similar Homework Help Questions

  • Problem 5 Assume that a worker has the Utility Function U(C,L) C "C" refers to consumption in dollars and &...

    Problem 5 Assume that a worker has the Utility Function U(C,L) C "C" refers to consumption in dollars and "L" to hours of leisure in a day. The worker has an offered wage of $10 per hour, 20 hours available for leisure or work per day, and $30 dollars a day from non- labour income. o 8.60 L (a) Find the budget constraint equation of the individual. (b) Find the optimal choice for the individual in terms of units of...

  • 4. Let a person's utility function over consumption, X, and leisure, L, be given by U...

    4. Let a person's utility function over consumption, X, and leisure, L, be given by U = XL2, SO MUx = L2 and MUL = 2xL.The individual may work up to 24 hours per day at wage rate, w = $10 per hour, and he has non-labor income of $50 per day. The price of x, px, is $5. (a) Find the utility-maximizing x and L. (b) Show that at the utility- maximizing quantities of x and L, the consumer's...

  • Need as much details as possible. Microeconomics. 2. Vera's utility over consumption (that is, all goods and service...

    Need as much details as possible. Microeconomics. 2. Vera's utility over consumption (that is, all goods and services that she buys), C, and leisure (work- free time), L, is U(CL)-CL. Her hourly wage is w=10 €. Suppose that she can work for 24 hours a day if she wants to and that the price of consumption is p . (a) How many units of consumption can Vera buy in a day if she works non-stop? What if she works 24-L...

  • Sonya’s utility function is given by:             U = C.25L.75,MUC= .25C-0.75L0.75, MUL= .75C0.25L-0.25 Where C is income...

    Sonya’s utility function is given by:             U = C.25L.75,MUC= .25C-0.75L0.75, MUL= .75C0.25L-0.25 Where C is income and she spends her entire income on consumption, L is the number of hours spent each day in leisure. Assume that her current wage rate is $12 per hour worked, she has no non-work income, and she can work as many hours as she wishes per day (not to exceed 24 hours of course). How many hours will Sonya choose to work, how many...

  • 2. Papa John has preferences over leisure and consumption represented by U(L,C)=3L3C2, where L is leisure...

    2. Papa John has preferences over leisure and consumption represented by U(L,C)=3L3C2, where L is leisure hours per day and C is dollars of consumption per day. Papa John has 12 hours of time available for leisure and a nonlabor income of $100 per day. What is Papa John's reservation wage? A. $0.08/hour B. $0.18/hour C. $8.33/hour D. $12.50/hour

  • New economics question

    Consider an economy with two goods, consumption c and leisure l, and a representativeconsumer. The consumer is endowed with 24 hours of time in a day. A consumer’s dailyleisure hours are equal to l = 24 − h where h is the number of hours a day the consumerchooses to work. The price of consumption p is equal to 1 and the consumer’s hourlywage is w. The consumer faces an ad valorem tax on their earnings of τ percent. Theconsumer also receives some exogenous income Y that does not depend on how manyhours she works (e.g. an...

  • Assume that a consumer’s satisfaction depends upon leisure (L) and income (Y), so that the utility...

    Assume that a consumer’s satisfaction depends upon leisure (L) and income (Y), so that the utility function is: U = 48L + LY – L2 Let N denote the hours of work by the consumer and W the hourly wage rate. Consequently, Y = WN and L + N = 24. If the hourly wage rate is $15 per hour: a) What are the utility maximizing hours of leisure, L*? b) What are the utility maximizing hours of work, N*?

  • 3. Jade is deciding how much to work in 2020. She derives utility from consumption,C, but...

    3. Jade is deciding how much to work in 2020. She derives utility from consumption,C, but she also really likes taking leisure time L. She must divide her available hours between work and leisure. For every hour of leisure she takes, she must work one fewer hours (meaning that the price of leisure is her hourly wage). The function that describes her preferences is given by The marginal utilities are U(C, L) = C(1/2)L(1/2) MUC = 1C(−1/2)L(1/2)2 MUL = 1C(1/2)L(−1/2)2...

  • 3. Consider a consumer who has well-behaved preferences over leisure (L) and consumption (x) They have...

    3. Consider a consumer who has well-behaved preferences over leisure (L) and consumption (x) They have nonlabor income m and have 24 hours in the day that must be divided between leisure and working. They are initially paid a wage w for each hour of work. The price of x is 1 (a) Suppose they optimally choose to work 8 hours. Draw the consumer's budget set and an indifference curve showing this situation. (b) Now suppose that they are paid...

  • Problem 2 A consumer has the following preferences regarding consumption and leisure time: ?(?, ?) =...

    Problem 2 A consumer has the following preferences regarding consumption and leisure time: ?(?, ?) = ? ∙ (24 − ?) Where ? is the quantity of an aggregated consumption good and ? are the supplied labour hours (working in a job) per day, and consequently, 24 − ? is the leisure time ?. The budget available for daily consumption is the sum of labour income and other fixed (daily) income with ? = price of the aggregated consumption good...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT