There are 800 consumers in an economy that each have the same utility function given by U(c, l) = 32√ c − (24 − l)2 where c is t

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2 years ago

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There are 800 consumers in an economy that each have the same utility function given by U(c, l) = 32√ c − (24 − l)2 where c is t

heir consumption and l is the number of hours they spend for leisure. A single firm serves the market with production function Y = 32L1/2K1/2 . The firm cannot choose its capital stock, which is fixed at K = 1600. You can assume the price level is equal to 1 so real and nominal wages are equivalentQuestion: Solve for an individual consumer’s labor supply as a function of the real wage and total supply of labor hours for the economy in one day as a function of the real wage (hint: you will need to use the budget constraint to cancel out consumption)

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1 answer:

borishaifa [10] · Answer 1 · 2022-07-30T22:44:27+03:00

borishaifa [10]2 years ago

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Answer:

Explanation:b