Questiona let the utility function be u logx

Economics

Question

(a) Let the utility function be U = log(x) - l, where l is labour and x is consumption. Find the level of labour supply if the wage rate w=10.

(b) If an overtime premium is introduced which raises w to 12 for all excess hours, what is the effect on labour supply?

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M9743686

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