Charlie Can Work as Many Hours as He Wishes at a Local

question 25

Multiple Choice

Charlie can work as many hours as he wishes at a local fast-food restaurant for a wage of $4 per hour. Charlie also does standup comedy. Since Charlie lives in a quiet, rather solemn Midwestern town, he is the town's only comedian and has a local monopoly for standup comedy. The demand for comedy is Q = 40 - P, where Q is the number of hours of comedy performed per week and P is the price charged per hour of comedy. When Charlie maximizes his utility, he spends at least 1 hour per week working at the restaurant and he gets at least 1 hour of leisure time. His utility depends only on income and leisure. How many hours per week does he perform standup comedy?

• A) 36
• B) 40
• C) 18
• D) 20
• E) We can't tell without knowing his utility function.

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Definitions:

Anorexia Nervosa

An eating disorder marked by an obsessive fear of gaining weight, leading to severe restriction of food intake and significant weight loss.

Obsessive-Compulsive Disorder

A mental health disorder characterized by repetitive, unwanted thoughts (obsessions) and irrational, excessive urges to do certain actions (compulsions).

Schizophrenia

A chronic and severe mental disorder affecting how a person thinks, feels, and behaves.

Anorexia

This disorder involves having an unusually low body mass, an extreme anxiety about putting on weight, and a twisted vision of one's body weight or configuration.