Problem
1. For the demand schedule p = (800-0.4q)0.5 find which value of q will maximize total revenue, using the quotient rule to check the second-order condition.
2. Assume that an individual can choose the number of hours per day that they work up to a maximum of 12 hours. This individual attempts to maximize the utility function U = L0.4I 0.6 where L is defined as hours not worked out of the 12-hour maximum working day, and I is income, equal to hours worked (H) times the hourly wage rate of £15. What mix of leisure and work will be chosen?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.