Solution-Computing the utility function for leisure

Computing the utility function for leisure

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A consumer has the utility function for leisure (l) and consumption (C) -> U(L,C)=C^3/4l^1/4.The real wage rate, w, is competitively determined to be ten. The number of hours, H, available to the consumer is 24. The profits by, distributed, to each consumer are 200 and taxes, T, are lump sum at 100.

(a) Given the above, how much leisure would the consumer consume?

(b) Given the above, how much consumption would the consumer choose?

Reference no: EM131413761

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Computing the utility function for leisure

Reference no: EM131413761

Reference no: EM131413761

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