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Utility labor-leisure sum plz help
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MANISH
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Utility labor-leisure sum plz help
Utility function between leisure L (hours/week) and earned income Y (Rs/week) of a person is given by
U= 15LY – 100 L – 140 Y – 25L^2 – 2Y^2. Find the optimum values of L and Y and hence determine the implied wage rate
Ankit Agrawal
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Re: Utility labor-leisure sum plz help
Are you sure the utility function is right?
Because you cannot get a positive Utility value with this equation.
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