An individual's daily trade-off between free time (t, in hours) and consumption (c, in €) is defined by a linear feasible frontier. The individual has 24 hours available per day. The opportunity cost of one hour of free time is €30 of consumption. Given this relationship, what is the maximum possible consumption if the individual chooses to have exactly 12 hours of free time?

Analyzing a Change in the Feasible Frontier

Interpreting the Feasible Frontier's Slope

An individual's daily trade-off between free time (t, in hours) and consumption (c, in €) is defined by a linear feasible frontier. The opportunity cost of one hour of free time is €30, and the maximum possible consumption is €720 (when free time is zero). Based on this information, which of the following combinations is feasible but not on the frontier itself?

An individual's feasible set for daily consumption (c, in €) and free time (t, in hours) is described by the linear relationship c = -30t + 720. According to this model, the amount of consumption the individual must give up to gain an additional hour of free time is greater when they have very little free time compared to when they have a lot of free time.

An individual's daily trade-off between free time (t, in hours) and consumption (c, in €) is defined by the linear relationship c = -30t + 720, where the individual has a maximum of 24 hours of free time. Which of the following combinations of free time and consumption is unattainable for this individual?

Deriving the Feasible Frontier Equation

Evaluating a Choice on the Feasible Frontier

An individual's trade-off between daily consumption (c, in €) and free time (t, in hours) is represented by the equation c = -30t + 720. Match each concept from this model to its correct description or value.

Evaluating a Proposed Change in Allocation