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    eco407.docx
    Home>Business & Finance homework help>Economics homework help>eco

    Suppose the wage is 50 per hour and that the consumer has 100 hours H to work with. Suppose that the MRS is given by(H-l)^0.5/c. What will the consumer’s choices of c and l be? Repeat with an upper bound of 10 hours. Repeat the first part with a ten percent flat tax on labor income. Suppose that the tax rate has two brackets so that income from hours above1/2H is taxed at 20 percent. How does the solution change?

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