Determine nancys optimal schooling level

Assignment Help Microeconomics

Reference no: EM13172686

Nancy is deciding on an optimal schooling strategy. She currently has zero years of schoolingand knows she will live for 60 more years. In any given year she can either choose to add toher current level of schooling or she can work. If she decides to work, she will have an annualsalary of √S, where S is her current level of schooling (measured in years of schooling). Ifshe decides to go to school, she will not have any income during that year, but her schooling

1level will increase by 1 year. Schooling is otherwise free. Nancy's discount rate is r = 0.Nancy's objective is to maximize lifetime income.

1. What is Nancy's lifetime income as a function of her level of schooling, S?

2. What is Nancy's lifetime income if she gets no schooling? What is it if she goes toschool for all 60 remaining years of her life? In words, describe the "cost" to Nancy ofchoosing to attend school for 1 additional year.

3. Determine Nancy's optimal schooling level.

4. During which part of Nancy's remaining life will she get her schooling?

Reference no: EM13172686

Questions Cloud

What is the molarity of the hcl solution : What is the molarity of the HCl solution if 270 mL of the HCl solution reacts with magnesium to produce 7.40 L of H_{2} gas measured at STP.

Stem cell research : Who regulates research into such things as stem cell research? Is legislation the only form of control for biomedical research? Are there economic or cultural processes that could control these activities? Do they differ from nation to nation? Why?

Find the moles of salicylic acid in aspirin sample : From there, how would I find the moles of salicylic acid in aspirin sample (mol) and the mass of salicylic acid in aspirin sample (g), which should help me calculate the percent purity of aspirin and the percent yield of aspirin in sample. Thank y..

State program of diffrential scanning chromatography : When setting temperature scan program of Diffrential Scanning Chromatography,

Determine nancys optimal schooling level : What is Nancy's lifetime income if she gets no schooling? What is it if she goes toschool for all 60 remaining years of her life? In words, describe the "cost" to Nancy ofchoosing to attend school for 1 additional year.

Debt crisis in developing countries : The debt crisis in developing countries today has had an adverse impact on the environment primary through:

Strategies for promoting curiosity in addressing this topic : How might you use the strategies for applying creativity to problems and issues in addressing this topic. H ow might you use the strategies for promoting curiosity in addressing this topic? Why do you think these strategies might be effective?

State what is the ph of a solution which is in formic acid : What is the pH of a solution which is 0.0400 M in formic acid, HCO2H, and 0.0600 M in sodium formate

Difference between total revenue and total cost of the item : Estimate the profit for each item as difference between total revenue and total cost of the item and

User Account

All Pages