Heather and Myrtle have the same tastes.Heather is paid $10 an hour and chooses to work 9 hours a day.Myrtle is paid $9 an hour for the first 8 hours she works and $18 an hour for any time she works beyond 8 hours a day.
A) Since she has the same tastes as Heather and can earn the same income by working 9 hours a day, she chooses to work 9 hours a day.
B) Unless her indifference curve is kinked, Heather would be better off facing the same pay schedule as Myrtle.
C) Myrtle would prefer Heather's pay schedule to her own.
D) Myrtle will work less than 9 hours a day.
E) None of the above.
Correct Answer:
Verified
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