Suppose a worker is offered a wage of $8 per hour, plus a fixed payment of $100 per day, and he can use 24 hours per day.What is the equation for the worker's opportunity set? (E is total earnings and L is leisure)
A)E = 100 - 8L.
B)E = 192 - 8L.
C)E = 292 - 8L.
D)none of the statements associated with this question are correct.

Question

Quizplus · Accepted Answer

The worker's total earnings (E) consist of a fixed payment of $100 per day plus $8 for each hour worked. If L is leisure, then the hours worked are (24 - L). Therefore, E = 100 + 8(24 - L) = 292 - 8L.

Suppose a Worker Is Offered a Wage of $8 Per