Dudley Has a Utility Function U(C, R)= C - (12

question 63

Multiple Choice

Dudley 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 $35 per day and is paid a wage of $6 per hour, how many hours of leisure will he choose per day?

• A)10
• B)8
• C)7
• D)6
• E)9

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