Akua gains utility from consumption C and leisure L. The most leisure she can consume in any given week is 110 hours. Her utility function is U (C, L) = C × L. Akua receives 660 GHS each week from her great-grandmother—regardless of how much she works. a. What will be Akua’s marginal rate of substitution. b. What will be Akua’s reservation wage? (Explain in det

Principles of Economics, 7th Edition (MindTap Course List)
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Chapter21: The Theory Of Consumer Choice
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Akua gains utility from consumption C and leisure L. The most leisure she can consume in
any given week is 110 hours. Her utility function is U (C, L) = C × L. Akua receives 660
GHS each week from her great-grandmother—regardless of how much she works.
a. What will be Akua’s marginal rate of substitution.
b. What will be Akua’s reservation wage? (Explain in detail)

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