varian workbook

[sanjana26]

please answer ! urgent!
 utility function =C-(12-R)^2
where Ris the leisure, person has 16hrs a day to divide b/w work and leisure
non labor income =20
Price of consumption = 1per unit

How many hours of leisure will he choose if he gets zero wages ?

[Sumit]

He will choose 12 hours of leisure bcoz If he choose more or less than this 12 hour of leisure His utility will decline....Also He has C+zero(R)=20 as Budget line..And his Max utility will be=20.

[sanjana26]

thanks i got it :)