Unformatted text preview: represented by the utility function U ! C , L " = ln C + ln L . He is faced with the usual time and budget constraints, and he has $300 in unearned income and 100 total hours in the week. a. Using any technique you wish, solve for Col. Mustard’s optimal H * in terms of W . b. Find his reservation wage. 3. Find a statistic in the popular media (examples: Newsweek , the internet, an advertisement) that suggests “research shows that X may lead to Y.” Give a plausible reason why the observed correlation may not have that causal interpretation. (If you are desperate or lazy: consider the Surgeon General’s warning on a pack of cigarettes.)...
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This note was uploaded on 03/19/2010 for the course ECON 480 taught by Professor Kinlaw during the Spring '08 term at UNC.
 Spring '08
 KINLAW
 Economics, Utility

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