Question

Robinson Crusoe obtains utility from the quantity of fish he consumes in one day (F), the quantity of coconuts he consumes that day (C), and the hours of leisure time he has during the day (L)) according to the utility function:

U = F^1/4C^1/4L^1/2

Robinson's production of fish is given by: F = (N_F)^1/2 , where N_F is the hours he spends fishing.

Robinson's production of coconuts is given by: C = (N_C)^1/2 , where N_C is the hours he spends picking coconuts.

Robinson is also bound by the constraint: N_F + N_C + L = 24.

What are Robinson optimal hours of leisure, L*

Answer 1