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

question 331

Multiple Choice

Scott's wage is $25 per hour and he works 50 hours a week, which is 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.