Amanda faces a tradeoff between labor (L) and leisure (R). She consumes a composite good (C). When she works, she earns an hourly wage of $23.00, and she has a maximum of 24 hours to spend on labor and leisure together. Whatever time she does not spend working, she spends on leisure. Amanda starts with an initial endowment of 17.00 units of the composite good, which she can buy and sell freely at a market price of $4.00. Given this information, what is Amanda's full or implicit income?

$620

Explanation:

Based on the information provided in the question, Amanda's full or implicit income would be calculated as:

When she works, she earns an hourly wage of $23.00, therefore when she works for 24 hours, she will earn:

= $23 × 24

= $552

Also, when Amanda sells all the 17 units of the composite good, she will earn:

= $4 × 17

= $68

Therefore, Amanda's full income would be:

= $552 + $68

= $620

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