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

question 4

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 $15 per day and is paid a wage of $8 per hour, how many hours of leisure will he choose per day?

• A)5
• B)6
• C)7
• D)9
• E)8

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Definitions:

Sadness

A mood characterized by feelings of disadvantage, grief, or disappointment.

Anxiety

A sensation of apprehension and discomfort, often in anticipation of a forthcoming event or regarding something with an unpredictable result.

Self-discrepancy

The difference between an individual's self-concept and their ideal or ought self, which can lead to emotional distress.

Practical Application

The use of theoretical knowledge in a real-world situation to solve practical problems or achieve practical results.