Labour-leisure diagrams, Using the labour-leisure diagrams,

Labour-leisure diagrams

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Using the labour-leisure diagrams, draw and examine the effects of the following job characteristics and preferences. In particular examine the effect on the reservation wage and the decision of how many hours to work.

A job entails two hours of unpaid commuting time (round trip).

A worker must pay a fixed amount (i.e., union membership fee) before being able to work.

Following the example of Google, the company offers employees free lunches worth $10.

Someone is a workaholic and has no use for leisure.

Reference no: EM131425968

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