May's utility function is , where C is dollars spent on goods other than housecleaning, D is the number of hours per day that somebody spends cleaning her house, H is the number of hours per day May spends cleaning her house, and J is the number of hours per day May spends working at her job. All May's income comes from her job. She can work as many hours a day as she wishes at a wage of $7 an hour.
a. If she cannot hire anyone to do her housecleaning, how many hours will she spend on the job and how many hours will she spend housecleaning?
b. If she can hire a housecleaner at $5 an hour, how many hours will she work on her job, how many hours of housecleaning will she hire, and how many hours will she clean house?

Question

May's utility function is  , where C is dollars spent on goods other than housecleaning, D is the number of hours per day that somebody spends cleaning her house, H is the number of hours per day May spends cleaning her house, and J is the number of hours per day May spends working at her job. All May's income comes from her job. She can work as many hours a day as she wishes at a wage of $7 an hour. 
a. If she cannot hire anyone to do her housecleaning, how many hours will she spend on the job and how many hours will she spend housecleaning?
b. If she can hire a housecleaner at $5 an hour, how many hours will she work on her job, how many hours of housecleaning will she hire, and how many hours will she clean house?

Quizplus · Accepted Answer

The Answer of May's utility function is  , where C is dollars spent on goods other than housecleaning, D is the number of hours per day that somebody spends cleaning her house, H is the number of hours per day May spends cleaning her house, and J is the number of hours per day May spends working at her job. All May's income comes from her job. She can work as many hours a day as she wishes at a wage of $7 an hour. 
a. If she cannot hire anyone to do her housecleaning, how many hours will she spend on the job and how many hours will she spend housecleaning?
b. If she can hire a housecleaner at $5 an hour, how many hours will she work on her job, how many hours of housecleaning will she hire, and how many hours will she clean house?

May's Utility Function Is , Where C Is Dollars