Charlie Can Work as Many Hours as He Wishes at a Local

question 70

Multiple Choice

Charlie can work as many hours as he wishes at a local fast-food restaurant for a wage of $4 per hour.Charlie also does standup comedy.Since Charlie lives in a quiet, rather solemn Midwestern town, he is the town's only comedian and has a local monopoly for standup comedy.The demand for comedy is Q = 40 - P, where Q is the number of hours of comedy performed per week and P is the price charged per hour of comedy.When Charlie maximizes his utility, he spends at least 1 hour per week working at the restaurant and he gets at least 1 hour of leisure time.His utility depends only on income and leisure.How many hours per week does he perform standup comedy?

• A)36
• B)40
• C)18
• D)20
• E)We can't tell without knowing his utility function.

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Definitions:

Formal Operational Thinking

The final stage in Piaget's cognitive development theory, characterized by the ability to think abstractly, logically, and systematically.

Intuitive Thinking

A cognitive process that relies on immediate, gut reactions and feelings rather than logical reasoning.

Genes

Segments of DNA located on chromosomes, responsible for the inheritance of specific traits from parents to offspring.

Prefrontal Cortex

The part of the brain located at the front of the frontal lobe, responsible for higher cognitive functions including decision-making and problem-solving.