Jack earns 5 dollars per hour.He has 100 hours per week which he can use for either labor or leisure.The government institutes a plan in which each worker receives a $100 grant from the government but has to pay 50% of his or her labor income in taxes.If Jack's utility function is U(c, r)= cr, where c is dollars worth of consumption of goods and r is hours of leisure per week, how many hours per week will Jack choose to work?

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The Answer of Jack earns 5 dollars per hour.He has 100 hours per week which he can use for either labor or leisure.The government institutes a plan in which each worker receives a $100 grant from the government but has to pay 50% of his or her labor income in taxes.If Jack's utility function is U(c, r)= cr, where c is dollars worth of consumption of goods and r is hours of leisure per week, how many hours per week will Jack choose to work?

Jack Earns 5 Dollars Per Hour