Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Amy the architect and Bill the builder both have the same preferences, given by: U = (C – 180) (L – 50) 2 If Amy works, she receives a wage w a = £10 per hour worked. Bill meanwhile is paid w b = £5 per hour worked. Amy and Bill both have a total of 100 hours per week, and neither of them has any non - labour income.
a) How do Amy and Bill decide how many hours to work? Set up their optimization problem and find the number of hours that they each choose to work.
b) Show Amy and Bill’s optimal choices in a single diagram (it does not have to be exactly to scale). Explain intuitively the reasons behind the different choice of hours made by Amy and Bill; make sure you mention the mechanisms at work behind the differences.
c) Now suppose the government wants to raise money to fund some investment programs. They decide that the best way to do this is to tax the income of high - wage earners. Any worker earning over £8 an hour is taxed at a rate of 20% of their income. How does this affect the labour supply decisions of Amy and Bill? How much revenue is the government able to collect under this taxation scheme?
Explain why most market labor supply curves slope upward and to the right, even though individual labor supply curves are presumed to be backward-bending. How does the height of a market labor supply curve relate to the concept of opportunity cost?
Global outsourcing has cost the U.S. economy far more than one million jobs since 2001, or somewhere between 15 and 35 percent of the total decline in employment since the onset of the 2001 recession. What will it likely do to the overall level of U...
A machine costs $50,000, and increases revenues by $18,000 per year. However, O&M costs increase by $4,000 per year. The machine lasts 6 years and your MARR is 7% annual rate compounded annually. What is the Present Worth (or Net Present Value) and s..
Draw a graph with “hours of typing” on the horizontal axis and “hours of filing” on the vertical. Do your indifference curves slope upward or downward? Why? Would you expect the indifference curve to be steeper or shallower at points that represent a..
An office supply company has purchased a light-duty delivery truck for $15,000. It is anticipated that the purchase of the truck will increase the company’s revenue by $10,000 annually, while the associated operating expenses are expected to be $3,00..
A piece of equipment costing $57,500 is being considered for a production process at Dew Chemicals. The expected benefits per year are $4,500 and estimated salvage value is $10,000. Determine the rate of return the company can get in this equipment p..
To ensure that eligible tribal applicants have the opportunity to participate in the Public Assistance (PA) process, PA staff members should:
In this module, it is demonstrated that sometimes extensive diseconomies of scale, say, due to high transportation costs, would require that the firm produce its product in a multiple of plants. The average hauling (freight) cost is $0.8Q; that is AF..
Compare the effects of the two policies, based on the models developed. Why might the United States have preferred one policy over another.
Suppose a firm’s production function is given by the following equation: Q = min(5K, 10L). If the firm is using 4 units of capital and 3 units of labor, how much output are they producing? Is this firm operating efficiently? Why or why not?
q1. how is the transfer price of an intermediate product determined whena there is no external market for the
The absolute value of Mars' MRS at his current consumption bundle is strictly greater than 2. Mars has convex preferences. Which of the following statements is (are) true? Justify your answer graphically.
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd