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In: Economics

There's a country with 1 company and 1 person. A company's labor demand by matching MPN...

There's a country with 1 company and 1 person.

A company's labor demand by matching MPN is w=B which is perfectly elastic

total time h=N+l , N for work time and l for leisure time

C is consumption.

to maximize a person's utility, U(C,l) = C^(1-a)l^a

desired C is (1-a)(w*h+b)

desired l is (a/w)(w*h+b)

labor supply curve is (1-a)*h-(a*b)/w

labor demand curve is B

is there anything wrong in this question? and verify this by matching aggregate supply and demand curve

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Expert Solution

notes pl:please give like didn't dislike I loose my job save it thanks

Rahul Sunny answered 8 months ago
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