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Dudley, in Problem 15, Has a Utility Function U(C, R)

Question 7

Multiple Choice

Dudley, in Problem 15, 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 $15 per day and is paid a wage of $8 per hour, how many hours of leisure will he choose per day?


A) 5
B) 6
C) 7
D) 9
E) 8

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