Graph of TB & TC from Hours Working: The graph below measures the benefits and costs from working, from the perspective of a worker. The variable Q stands for the number of hours the worker works, such that th horizontal axis measures the hours of work per week. On the assumption that they can choose their hours, the worker estimates a total benefit ( TB) from working according to the equation, TB = 1.335Q. (The value 1.335" might be interpreted as the hourly wage paid to the worker.) The worker estimates their total cost from working with the equation, TC Q(0.463)+Q°(0.027).(The TC of each Q might be interpreted as includir he displeasure of effort and exertion from working Q hours.) It can be assumed that TC > TB for all hours beyond point B (32.3). TB, TC 40 H 30 20 10-

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
icon
Related questions
Question

Q10

**Graph of TB & TC from Hours Working:** 

The graph below measures the benefits and costs from working, from the perspective of a worker. The variable \( Q \) stands for the number of hours the worker works, such that the horizontal axis measures the hours of work per week. On the assumption that they can choose their hours, the worker estimates a total benefit (TB) from working according to the equation, \( TB = 1.335Q \). (The value "1.335" might be interpreted as the hourly wage paid to the worker.) The worker estimates their total cost from working with the equation, \( TC = Q(0.463) + Q^2(0.027) \). (The TC of each \( Q \) might be interpreted as including the displeasure of effort and exertion from working \( Q \) hours.) It can be assumed that \( TC > TB \) for all hours beyond point B (32.3).

In the graph:

- The vertical axis represents TB and TC (Total Benefit and Total Cost).
- The horizontal axis represents the number of hours worked, \( Q \).
- The blue curve represents the Total Benefit (TB).
- The red curve represents the Total Cost (TC).
- Point A is marked, corresponding to 32.3 hours, where the curves intersect.
- Beyond point B (32.3 hours), TC exceeds TB.

According to the graph, point A corresponds to 32.3 hours. Based on the worker's estimation of the costs and benefits, the Net Benefit (NB) from working for a certain number of hours can be analyzed. The multiple-choice options provided ask about the number of hours where NB from working certain hours is greater than the NB from another count of hours. Point A is a key reference in these calculations.

**Options:**

- A. \( 16.148; 32.296 \)
- B. \( 32.296; 16.148 \)
- C. \( 40; 32.296 \)
- D. \( 40; 20 \)
Transcribed Image Text:**Graph of TB & TC from Hours Working:** The graph below measures the benefits and costs from working, from the perspective of a worker. The variable \( Q \) stands for the number of hours the worker works, such that the horizontal axis measures the hours of work per week. On the assumption that they can choose their hours, the worker estimates a total benefit (TB) from working according to the equation, \( TB = 1.335Q \). (The value "1.335" might be interpreted as the hourly wage paid to the worker.) The worker estimates their total cost from working with the equation, \( TC = Q(0.463) + Q^2(0.027) \). (The TC of each \( Q \) might be interpreted as including the displeasure of effort and exertion from working \( Q \) hours.) It can be assumed that \( TC > TB \) for all hours beyond point B (32.3). In the graph: - The vertical axis represents TB and TC (Total Benefit and Total Cost). - The horizontal axis represents the number of hours worked, \( Q \). - The blue curve represents the Total Benefit (TB). - The red curve represents the Total Cost (TC). - Point A is marked, corresponding to 32.3 hours, where the curves intersect. - Beyond point B (32.3 hours), TC exceeds TB. According to the graph, point A corresponds to 32.3 hours. Based on the worker's estimation of the costs and benefits, the Net Benefit (NB) from working for a certain number of hours can be analyzed. The multiple-choice options provided ask about the number of hours where NB from working certain hours is greater than the NB from another count of hours. Point A is a key reference in these calculations. **Options:** - A. \( 16.148; 32.296 \) - B. \( 32.296; 16.148 \) - C. \( 40; 32.296 \) - D. \( 40; 20 \)
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 1 images

Blurred answer
Knowledge Booster
Comparative Advantage
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
Economics
ISBN:
9780190931919
Author:
NEWNAN
Publisher:
Oxford University Press
Principles of Economics (12th Edition)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education