| << Chapter < Page | Chapter >> Page > |
Card 6 / 12:
Siddhartha has 50 hours per week to devote to work or leisure. He has been working for $8 per hour. Based on the information in , calculate his utility-maximizing choice of labor and leisure time.
This problem is straightforward if you remember leisure hours plus work hours are limited to 50 hours total. If you reverse the order of the last three columns so that more leisure corresponds to less work and income, you can add up columns two and five to find utility is maximized at 10 leisure hours and 40 work hours:
| Previous Card | ← Previous Card Button |
| Next Card | → Next Card Button |
| Flip Card | ↑ / ↓ / Return / Space |
Notification Switch
Would you like to follow the 'Microeconomics' conversation and receive update notifications?
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|