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Economics

Consider the optimal choice of labor and leisure discussed in class and the text. Suppose a consumer works the first 8 hours of the day at a wage rate of $10 per hour, but receives an overtime wage rate of $20 for additional time worked. a. On an optimal choice diagram, draw the budget constraint. (Hint: it is not a straight line.) b. Draw a set of indifference curves that would make it optimal for him to work 4 hours of overtime each day.

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M9440006

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