Consider the following labor-leisure choice model.Utility function over consumption (C) and leisure (L)U(C,L) = C2/5L1/5%3!Total hours: H = 40Labor hours: NS = H -LNon-labor income: Tt = 20Lumpsum tax: T = 10Hourly wage: w = 2What is the optimal labor supplied (NS*)?O A. 15В. 25O C. 6D. 34O E. None of the above

Given; Utility function; U=C2/5L1/5 Total hours; H= 40Labor hours; Ns=H-LNon-labor income;…

Consider the following labor-leisure choice model. Utility function over consumption (C) and leisure (L) U(C,L) = C2/5L1/5 %3D Total hours:H= 40 Labor hours: NS = H-L Non-labor income: TT = 20 Lumpsum tax: T = 10 Hourly wage: w = 2 What is the optimal labor supplied (NS*)? O A. 15 О В. 25 OC.6" O D. 34 OE. None of the above

Consider the following labor-leisure choice model. Utility function over consumption (C) and leisure (L) U(C,L) = C2/5L1/5 %3D Total hours:H= 40 Labor hours: NS = H-L Non-labor income: TT = 20 Lumpsum tax: T = 10 Hourly wage: w = 2 What is the optimal labor supplied (NS*)? O A. 15 О В. 25 OC.6" O D. 34 OE. None of the above

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter17: Capital And Time

Section: Chapter Questions

Problem 17.1P

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