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This question was created from Chapter 2 Problems and Exercises (1)


5. Suppose Lauren is given two options by her employer. First option: She may
choose her own hours of work and will be paid the relatively low wage rate im-
plied by budget line HW shown in the accompanying diagram. Second option:
She can work exactly HR hours and will be paid the relatively high wage rate
implied by budget line HW,. Which option will she choose? Justify your answer.

Top Answer

Lauren will choose the second option to work in the designated hours at a high wage... View the full answer

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