Contract Acceptance Decision
An individual's well-being from combinations of daily consumption ('c') and free time ('t') is described by the utility function U(c, t) = c + 10√t. If this individual does not accept a work contract, their fallback option provides them with 4 units of consumption and 16 hours of free time. A proposed contract would result in them optimally choosing to have 9 hours of free time and a consumption of 15 units.
Based on the principle that a person will only agree to a contract if it makes them at least as well-off as their next best alternative, determine whether this individual should accept the contract. Explain your reasoning by showing the relevant comparison.
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