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Assume That Alex Is Maximizing Utility by Working 51 Hours

Question 16

Multiple Choice

Assume that Alex is maximizing utility by working 51 hours per week and his wage is $15 per hour.Which of the following statements is CORRECT?


A) In equilibrium,the value of an additional hour of leisure for Alex is less than $15.
B) Alex is probably not on the highest indifference curve that touches the time allocation budget line.
C) The marginal utility Alex gets from the extra money he earns from an additional hour spent working is equal to the marginal utility of an additional hour of leisure.
D) In equilibrium,the value of an additional hour of leisure for Alex is more than $15.

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