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

---

Definitions:

Leadership Effectiveness

The capacity of a leader to achieve desired results or reach goals through influencing others.

Leadership Position

A role within an organization that holds authority and responsibility, often involving guiding and directing others.

Traits And Skills

Refers to the innate characteristics (traits) and learned capabilities (skills) that individuals possess, which influence their behavior and performance.

Leader Effectiveness

The degree to which a leader is successful in achieving desired outcomes for their group or organization.