22. Taro's utility function is U(C, R)= 32√R+C, where R is the amount of leisure. He has 16 hours a day to divide between work and leisure. He gets $10 an hour no matter how many hours he works, but must pay a 20% tax on his labor income. He has also an income of $40 from non-labor income source. How many hours will he choose to work? A) 4 B) 8 C) 10 D) 12 E) 16

22. Taro's utility function is U(C, R)= 32√R+C, where R is the amount of leisure. He has 16 hours a day to divide between work and leisure. He gets $10 an hour no matter how many hours he works, but must pay a 20% tax on his labor income. He has also an income of $40 from non-labor income source. How many hours will he choose to work? A) 4 B) 8 C) 10 D) 12 E) 16

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter16: Labor Markets

Section: Chapter Questions

Problem 16.1P

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