Dudley, has a utility function U(C, R)= C - (12 - R)², where R is leisure and C is consumption per day.He has 16 hours per day to divide between work and leisure.If Dudley has a nonlabor income of $35 per day and is paid a wage of $0 per hour, how many hours of leisure will he choose per day? A)11 B)9 C)10 D)13 E)12

Question

Quizplus · Accepted Answer

Given Dudley's wage is $0 per hour, his decision on leisure doesn't depend on the wage rate because he earns nothing from working. His income is fixed at $35 per day regardless of how much he works. Therefore, his choice of leisure will maximize his utility without considering the trade-off between work and leisure for income. Since the utility function and the specific preferences are not provided in a way that allows for calculation, and without additional information on how Dudley values leisure versus consumption (which is fixed due to non-labor income), we cannot determine the exact hours of leisure he will choose based on the given utility function. However, given the choices provided and the lack of information to calculate the exact preference, the correct answer would typically depend on the details of the utility function, which are not clearly interpretable from the question as presented. Thus, without clear guidance from the utility function or Dudley's preferences, we cannot accurately determine the number of leisure hours.

Dudley, Has a Utility Function U(C, R)= C -