8. (Continuing with the situation described in the preceding question.) Consider the economic model of an individual's labor-leisure choice with the following components: good w represents the hourly wage rate Y represents nonlabor income T represents total time available U(C, L) represents the individual's utility function MUC denotes the marginal utility of consumption MUL denotes the marginal utility of leisure Unless otherwise instructed, assume that consumption and leisure are normal goods. Whenever graphing the model, put C on the vertical axis and L on the horizontal axis. The individual maximizes his utility by choosing the optimal consumption bundle C*=90, L*=15, and H*=9. At this consumption bundle, MUC=4 and MUL=12. If p=2, what is w? 04 06 C represents units of the consumption good L represents hours of leisure H represents hours of paid work p represents the unit price of the consumption 8 10 O There is not enough information to determine w.

8. (Continuing with the situation described in the preceding question.) Consider the economic model of an individual's labor-leisure choice with the following components: good w represents the hourly wage rate Y represents nonlabor income T represents total time available U(C, L) represents the individual's utility function MUC denotes the marginal utility of consumption MUL denotes the marginal utility of leisure Unless otherwise instructed, assume that consumption and leisure are normal goods. Whenever graphing the model, put C on the vertical axis and L on the horizontal axis. The individual maximizes his utility by choosing the optimal consumption bundle C=90, L=15, and H*=9. At this consumption bundle, MUC=4 and MUL=12. If p=2, what is w? 04 06 C represents units of the consumption good L represents hours of leisure H represents hours of paid work p represents the unit price of the consumption 8 10 O There is not enough information to determine w.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter16: Labor Markets

Section: Chapter Questions

Problem 16.11P

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7. Consider a generic consumption/leisure choice. How will the follow ing events/policies affect either the consumer's choice of hours worked and labor supply, if at all? Be specific as possible about income and substitution effects and if there are multiple cases, consider them all (a) A raise in the wage rate (b) A labor income tax on all income. (c) A labor income tax on all labor income beyond the first 20 hours.
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Title Suppose that Lynn enjoys coconut oil in her coffee. She has very particular preferences, and she mus Description Suppose that Lynn enjoys coconut oil in her coffee. She has very particular preferences, and she must have exactly two spoonfuls of coconut oil for each cup of coffee. Let C be the number of cups of coffee, and O be the number of spoonfuls of coconut oil. Also, let PC be the price of a cup of coffee. Suppose Lynn has $12 to spend on coffee and coconut oil. Also, the price of coconut oil is $.50 per spoonful.a) Graph Lynnâs Price Consumption Curve for prices, PC = $1, PC = $2, and PC = $3. Please put the number of cups of coffee on the horizontal axis, and the number of spoonfuls of coconut oil on the vertical axis. Be sure to label your graph carefully and accurately.b) Graph Lynnâs demand curve for coffee. You may assume that both coconut oil and coffee are continuous variables so she can consume any amount of coffee and coconut oil that she could afford.…
9: Is il fossible for marginal utility To be negetive and yet Tolal Utilily To positive ? INhy be why not ? or
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8. Suppose both the consumption good and leisure are normal goods any graphs what will happen to the household's choice if there is (a) an increase in dividend income ; (b) an increase in wage w. without bois 1-on0 9TI laicuro in inferior Rengat
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8:35 O ll 60% Econ101- Final Written.. QUESTION 2 Table 1 Number of Chocolate Bars per Day Total Utility Marginal Utility 80 150 200 230 10 2- Refer to the table above, 2.a- What is the marginal utility of the second chocolate bar per day? Please calculate. (3 pt) 2.b- What is the total utility of five chocolate bars per day QUESTION 3 3- You are a firm owner. Your total revenue was 100 TL last year. Your costs for rent and supplies were 35 TL. To start this business, you invested certain amount of money that could bring you a 45 TL as an annual return. If you would work for another company, DONOT CORY 3.a- Refer to the statement above. What were your economic costs during the year? Please calculate. (3 pt) 3.b- Refer to the statement above. What was your cconomic profit last year? Please calculate. (3 pt) QUESTION 4 Table 2 Technology Units of Capital Number of Employees 2. 5 12 B 11 10 D 10 4 4- Use the information provided in Table 2 above to answer the question(s) that follow. II…
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Why does a change in income cause a parallel shift in the budget constraint?