0.8 utils

Microeconomic Theory
12th Edition
ISBN:9781337517942
Author:NICHOLSON
Publisher:NICHOLSON
Chapter16: Labor Markets
Section: Chapter Questions
Problem 16.1P
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Suppose Jenny has 16 hours per day to allocate between work and leisure and she

earns a wage rate of $25 per hour. If at the utility-maximizing level of employment

(i.e., MRSy; = w), Jenny's MUy is 20 utils, what is her MUl?

O A.

1.25 utils

O B.

0.8 utils

O C. 500 utils

O D. Cannot be determined with the information provided.

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