Suppose that utility depends on market goods consumption,

Suppose that utility depends on market goods consumption, ????, and time spent in non-market activities, ????. Indifference curves over combinations of these two goods are different for different mothers, but are smooth and convex for all mothers.

All mothers have weekly time endowments of 80 hours per week that they can divide between market work and non-market activities. In this problem, mothers earn a wage $20 per hour in market work and have non-labor income of $200 per week. For this group of mothers, working in paid employment requires purchasing child care services, which cost $5 per hour for every hour worked. Thus, the net hourly wage from market work for these working mothers is $15 per hour.

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