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

question 4

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 $20 per day and is paid a wage of $8 per hour, how many hours of leisure will he choose per day?

• A) 7
• B) 6
• C) 9
• D) 5
• E) 8

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Definitions:

Triple Bottom Line

A framework or accounting principle that goes beyond the traditional measures of profits, assessing an organization's performance in terms of its environmental, social, and financial impacts.

Sustainable, Long-Term Growth

Economic growth and business expansion that are maintained over time without depleting resources or harming the environment.

Stakeholder Responsibility

The obligation of an organization to consider and respond to the interests and well-being of all its stakeholders, including customers, employees, investors, and the community.

Profit Responsibility

The obligation of business units or departments to generate earnings above their operational costs.