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