Tuesday, November 8, 2011

Labor supply- Labor Economics?

The Utility function of a worker is represent by U(C,L) = C x L, so that the marginal utility of leisure is C and the marginal utility of consumption is L. Suppose this person currently has a weekly income $600 and chooses to enjoy 70 hours of leisure per week. How many additional dollars of income would it take to entice the worker to work 10 more hours?

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