Continue to Suppose as in the Previous Question That the Utility

question 18

Multiple Choice

Continue to suppose as in the previous question that the utility function for each of the firm's 5 workers is $U ( l ) = w l - l ^ { 2 }$ where l is hours worked and w is the wage.Suppose now that the firm can only monitor the total hours worked by the group and pay each worker an equal share of the wage $w = 20$ times the total number of hours.How many hours will each worker choose to work?

• A)2 hours.
• B)4 hours.
• C)8 hours.
• D)10 hours.

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Definitions:

The Federalist

Collection of eighty-five essays that appeared in the New York press in 1787–1788 in support of the Constitution; written by Alexander Hamilton, James Madison, and John Jay and published under the pseudonym “Publius.”

Popular Self-Government

A system in which the general public has the power to govern themselves, usually through elected representatives.

Central Authority

The governing body or entity at the highest level of an organization or state, with overarching control or direction.

Small Communities

Groups of people living in a defined geographic area, typically characterized by a sense of intimacy, shared values, and mutual support among members.