The consumer's utility function for Consumption (C) and Leisure (L) is given as U(C,L) = √CL His hourly wage is $10, non-labor income is $20; and he has a total of 16 hours to allocate between labor and leisure Based on this information, the consumer's total utility at the optimal level (or optimal C,L combination) is: a. 57.0 utils b. 28.5 utils c. 99.75 utils d. 114.5 utils e. Cannot be determined with the information given
The consumer's utility function for Consumption (C) and Leisure (L) is given as U(C,L) = √CL His hourly wage is $10, non-labor income is $20; and he has a total of 16 hours to allocate between labor and leisure Based on this information, the consumer's total utility at the optimal level (or optimal C,L combination) is: a. 57.0 utils b. 28.5 utils c. 99.75 utils d. 114.5 utils e. Cannot be determined with the information given
Chapter3: Preferences And Utility
Section: Chapter Questions
Problem 3.11P
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The consumer's utility function for Consumption (C) and Leisure (L) is given as U(C,L) = √CL
His hourly wage is $10, non-labor income is $20; and he has a total of 16 hours to allocate between labor and leisure
Based on this information, the consumer's total utility at the optimal level (or optimal C,L combination) is:
a. 57.0 utils
b. 28.5 utils
c. 99.75 utils
d. 114.5 utils
e. Cannot be determined with the information given
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