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Jim, Mike and David are the only individuals participating in the very particular labor market for 'protective' services. Jim's labor supply is given by H= -46 + 0.87424 ⋅w , where is the hours worked per week and is the hourly wage rate. Mike and David's labor supply functions are represented by H= -35 + 1.42842 ⋅w and H= -39 + 1.32464 ⋅w , respectively.
a.) First, determine the reservation wage for each of these individuals, showing every step of your work. Please round to the second decimal point.
b.) Second, if the market wage is $37, how many hours does each individual supply? And, at which wage rate would each individual supply 40 hours per week? Please round to the second decimal point.
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National Bureau of Economic Research. CIA's World Factbook. Organization for Economic Co-operation and Development. You should also consider the sources in the University Library listed under Country Profiles and Econcomic Data.
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