There are no taxes on the first $500 that Debra earns per week, but on income above $500 per week, she must pay a 60% tax. Debra's job pays $10 per hour. Her utility function is U(c, r) = rc², where r is hours of leisure and c is dollars worth of consumption. She has 100 hours to divide between work and leisure. How many hours per week will she choose to work?

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The Answer of There are no taxes on the first $500 that Debra earns per week, but on income above $500 per week, she must pay a 60% tax. Debra's job pays $10 per hour. Her utility function is U(c, r) = rc², where r is hours of leisure and c is dollars worth of consumption. She has 100 hours to divide between work and leisure. How many hours per week will she choose to work?

There Are No Taxes on the First $500 That Debra