If Hongs preferences between spending and leisure can be des

If Hong\'s preferences between spending and leisure can be described by U(R,C) min[40R,C), Hong will choose to work a) 28 hours b) 22 hours c) 6 hours d) no hours

Solution

To find indifference we have min(40R,C)=40R=C

we have 40R=C

but R+C=24

then 40(24-C)=C

960=41C

C=23.41 that is approximaltly 24 hours

Hence he will work for R=0 hours

Hence kindly choose option D