Dudley Has a Utility Function U(C, R) = C -

Dudley has a utility function U(C, R) = C - (12 - R) ², where R is leisure and C is consumption per day. He has 16 hours per day to divide between work and leisure. If Dudley has a nonlabor income of $20 per day and is paid a wage of $0 per hour, how many hours of leisure will he choose per day?

A) 9
B) 10
C) 11
D) 13
E) 12

Correct Answer:

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