Scott's Wage Is $25 Per Hour and He Works 50

question 115

Multiple Choice

Scott's wage is $25 per hour and he works 50 hours a week, which is his optimal labor supply.At his optimal labor supply, his marginal utility of one hour of leisure is equal to:

• A)the marginal utility he gets from $25 worth of goods.
• B)the marginal utility he gets from more than $25 worth of goods.
• C)the marginal utility he gets from less than $25 worth of goods.
• D)the substitution effect.

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