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Josh earns 20 dollars an hour. He has nonlabour income of $80 per week. He has 60 hours a week available for either labour or leisure.
His utility function is U (c, r) = c^3r, where c is dollars' worth of goods and r is hours of leisure.
How many hours per week will he work?
Fewer than 40 hours per week
At least 50 hours per week (50 or more)
At least 48 hours per week but fewer than 50 hours per week
At least 45 hours per week but fewer than 48 hours per week
At least 40 hours per week but fewer than 45 hours per week
Which is correct?
Please show steps.
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