May's Utility Function Is U = C + 14D^1/22

question 50

Essay

May's utility function is U = C + 14D^1/22.5(H +J)², where C is dollars spent on goods other than housecleaning, D is the number of hours per day that somebody spends cleaning her house, H is the number of hours per day May spends cleaning her house, and J is the number of hours per day May spends working at her job.All May's income comes from her job.She can work as many hours a day as she wishes at a wage of $7 an hour.
a.If she cannot hire anyone to do her housecleaning, how many hours will she spend on the job and how many hours will she spend housecleaning?
b.If she can hire a housecleaner at $5 an hour, how many hours will she work on her job, how many hours of housecleaning will she hire, and how many hours will she clean house?

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Definitions:

Entertainment Allowance

A budget or fund allocated by organizations for hosting business clients or for employee leisure activities.

Providing Information

The act of supplying relevant and helpful details about a product or service to aid in decision-making.

Handle Customer Complaints

The process of addressing grievances raised by customers regarding products or services to ensure satisfaction.

Return Damaged Merchandise

The process of sending back products that are defective or damaged upon receipt to the seller for a refund, replacement, or credit.