Consider a Robinson Crusoe economy. Robinson is a representative agent with utility function: u(c, r) = cr, %3D where c is coconuts, and r is leisure. In order to produce coconuts, technology dictates the production, which is given by c = avL, C = where a is some constant, and L is labour. Suppose that a=2. Finally, there is a time constraint: r+L=21 for the consumer. Also the consumer has income of 9. Consider a competitive labour market. Given the wage rate, w-1, the consumer would like to supply 2 decimal places.) units of the labour input. (Answer just the number up to

Consider a Robinson Crusoe economy. Robinson is a representative agent with utility function: u(c, r) = cr, %3D where c is coconuts, and r is leisure. In order to produce coconuts, technology dictates the production, which is given by c = avL, C = where a is some constant, and L is labour. Suppose that a=2. Finally, there is a time constraint: r+L=21 for the consumer. Also the consumer has income of 9. Consider a competitive labour market. Given the wage rate, w-1, the consumer would like to supply 2 decimal places.) units of the labour input. (Answer just the number up to

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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