MrCog Has 18 Hours Per Day to Divide Between Labor

Mr.Cog has 18 hours per day to divide between labor and leisure.His utility function is U(C, R) = CR, where C is dollars per year spent on consumption and R is hours of leisure.If he has a nonlabor income of 40 dollars per day and a wage rate of 8 dollars per hour, he will choose a combination of labor and leisure that allows him to spend

A) 184 dollars per day on consumption.
B) 82 dollars per day on consumption.
C) 112 dollars per day on consumption.
D) 92 dollars per day on consumption.
E) 138 dollars per day on consumption.

Correct Answer:

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