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

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter4: Utility Maximization And Choice

Section: Chapter Questions

Problem 4.13P

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