Dudley, in Problem 15, Has a Utility Function U(C, R)

question 5

Multiple Choice

Dudley, in Problem 15, has a utility function U(C, R) = C - (12 - R) ², where R is leisure and C is consumption per day. He has 16 hours per day to divide between work and leisure. If Dudley has a nonlabor income of $30 per day and is paid a wage of $4 per hour, how many hours of leisure will he choose per day?

• A) 9
• B) 7
• C) 8
• D) 11
• E) 10

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Definitions:

Innate

Refers to qualities, abilities, or characteristics that a person is born with, not acquired through learning or experience.

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A figure central to the 1991 police brutality case in Los Angeles, whose violent arrest led to widespread riots and discussions about race and policing in the United States.