a) Chika has calculated the marginal utility that she derives from her paid employment and from leisure. This is presented in tablebelow. In her ideal world, where she could work as few or as many hours as she wished, how would she allocate her sixteen wakinghours? (She does need to sleep.)Hours12345678910MU PaidEmployment105958575655545352515MULeisure100908070605040302010hours working andb) Unfortunately, Chika begins to realize that unless she gets an education she will not enjoy a high salary and therefore, will not beable to afford more leisure time. She therefore decides to spend six hours each day studying (in addition to her eight hours of sleep).How will she now divide the remaining hours between work and leisure?hours working andhours leisure.hours leisure.

Chika will assign each extra hour to the activity that provides a greater marginal utility. Marginal…

a) Chika has calculated the marginal utility that she derives from her paid employment and from leisure. This is presented in table below. In her ideal world, where she could work as few or as many hours as she wished, how would she allocate her sixteen waking hours? (She does need to sleep.) Hours 1 2 3 4 5 6 7 8 9 10 MU Paid Employment 105 95 85 75 65 55 45 35 25 15 MU Leisure 100 90 80 70 60 50 40 30 20 10 hours leisure. hours working and b) Unfortunately, Chika begins to realize that unless she gets an education she will not enjoy a high salary and therefore, will not be able to afford more leisure time. She therefore decides to spend six hours each day studying (in addition to her eight hours of sleep). How will she now divide the remaining hours between work and leisure? hours working and hours leisure.

a) Chika has calculated the marginal utility that she derives from her paid employment and from leisure. This is presented in table below. In her ideal world, where she could work as few or as many hours as she wished, how would she allocate her sixteen waking hours? (She does need to sleep.) Hours 1 2 3 4 5 6 7 8 9 10 MU Paid Employment 105 95 85 75 65 55 45 35 25 15 MU Leisure 100 90 80 70 60 50 40 30 20 10 hours leisure. hours working and b) Unfortunately, Chika begins to realize that unless she gets an education she will not enjoy a high salary and therefore, will not be able to afford more leisure time. She therefore decides to spend six hours each day studying (in addition to her eight hours of sleep). How will she now divide the remaining hours between work and leisure? hours working and hours leisure.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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