a) $1 b) $2 c) $5 d) $10 e) None of the above. John's technology for producing apple pie (a) is represented by a = VL+ 2 where L islabor. His utility function from his consumption of apple pies (a) and his labor (2) isgiven by u (a, L) = 2a – 4L². Assume John is the only consumer and producer of applepies in his household and suppose the price of apple pies is set at $1. The marketequilibrium wage rate for John's labor supply is%3D

Given information Production function a=L^0.5+2 Utility function U=2a-4L^2 Price of Apple=1

John's technology for producing apple pie (a) is represented by a = VL+2 where Lis labor. His utility function from his consumption of apple pies (a) and his labor (L) is given by u (a, L) = 2a – 4L². Assume John is the only consumer and producer of apple pies in his household and suppose the price of apple pies is set at $1. The market equilibrium wage rate for John's labor supply is

John's technology for producing apple pie (a) is represented by a = VL+2 where Lis labor. His utility function from his consumption of apple pies (a) and his labor (L) is given by u (a, L) = 2a – 4L². Assume John is the only consumer and producer of apple pies in his household and suppose the price of apple pies is set at $1. The market equilibrium wage rate for John's labor supply is

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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