What is the effect of introduction of an overtime premium

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Let the utility function be U = log(x) -.1168_eeecbd55-ed91-4dfa-ad52-5cebc9369d59.png

Find the level of labor supply if the wage rate, w, is equal to 10. What is the effect of the introduction of an overtime premium that raises w to 12 for hours in excess of that worked at the wage of 10?

Reference no: EM131205302

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