Asked by
Jazmyn Thomas
on Oct 26, 2024Verified
Scott's wage is $25 per hour and he works 50 hours a week,which is his optimal labor supply at that wage.His marginal utility of one hour of leisure is equal to the:
A) marginal utility he gets from $25 worth of goods.
B) marginal utility he gets from more than $25 worth of goods.
C) marginal utility he gets from less than $25 worth of goods.
D) substitution effect.
Marginal Utility
The augmented enjoyment or usefulness that comes from the consumption of an additional unit of a product or service.
Optimal Labor Supply
The amount of labor hours that maximizes an individual's or firm's net benefits or utility.
Worth of Goods
The total value or market price of all goods considered or evaluated.
- Acquire understanding of the forfeited benefits of leisure time in relation to wage rates.
Verified Answer
HJ
Learning Objectives
- Acquire understanding of the forfeited benefits of leisure time in relation to wage rates.