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  • The Household's Feasible Frontier (Figure 3.21)

Interpreting a Household's Feasible Frontier Graph

A household's feasible frontier is a straight line on a graph where daily consumption (c) is on the vertical axis and hours of non-working time (t) are on the horizontal axis. The line passes through two points: (A) 24 hours of non-working time and $0 consumption, and (B) 8 hours of non-working time and $480 consumption. Based on this information, first, determine the mathematical equation for this feasible frontier. Second, explain the economic meaning of the slope of this line.

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