Margaret works as a tutor and earns $20 per hour of tutoring. She has no other source of income. a. Let L denote the leisure hours (hours spent not tutoring) per day and let I denote the daily income (total earnings) in dollars. Each day has 24 hours. Write an equation relating Land I. b. Graph the relationship between L and I with L on the horizontal axis and I on the vertical axis. Label the axes, the intercept values, and the slope of the line. c. What is Margaret's opportunity cost of leisure?

Margaret works as a tutor and earns $20 per hour of tutoring. She has no other source of income. a. Let L denote the leisure hours (hours spent not tutoring) per day and let I denote the daily income (total earnings) in dollars. Each day has 24 hours. Write an equation relating Land I. b. Graph the relationship between L and I with L on the horizontal axis and I on the vertical axis. Label the axes, the intercept values, and the slope of the line. c. What is Margaret's opportunity cost of leisure?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: POSSIBLE PO Sofia receives a text message from her bank. All of the following indicate that the text…

A: In the banking sector, there are chances that people may face scam due to any fake call or message…

Q: Carson used $800 000 of their savings to open a coffee shop. The savings account paid 2% interest.…

A: We know that the economic profit is the difference between the total sales revenue of output and the…

Q: An account was opened with $1,000 three years ago. Today, the account balance is $1,150.30. If the…

A: Interest is an amount earned on any investment. It can be basically classified as• Simple Interest…

Q: Explain the main structure of a proposal and discuss what kinds of content should be included. What…

A: A proposal is a written document that outlines a plan or an idea and seeks approval, funding, or…

Q: You purchased a winning ticket for a $5 million lottery which pays $500,000 immediately and the rest…

A: Here in this question, To decide whether we have to go with the deal or not. We have to find the…

Q: Calculate Savings rate when income is $22000 and the APS is 0.48

A: APS is the average propensity to save. It is the ratio of savings and income.

Q: Your client is 32 years old. She wants to begin saving for retirement, with the first payment to…

A: Given Client's age = 32 years Annual payments, P= $11,000 Interest rate, r=9% Let us assume she…

Q: Can you please do part (d) (e) (f). Greatly Appreciated!

A: Maximum point is one kind of point in which all the available resources are used properly in a high…

Q: If your receive $500 in simple interest on a loan that you made for $10,000 for 5 years, what was…

A: here we calculate the interest rate charged which are as follow-

Q: When do Projects require Only Operating and Investing Activities?

A: Projects require operating and investing cash flows to get the estimates about various aspects like…

Q: There has been much publicity about bonuses paid to financial sector workers. Just how large are…

A: Given the time series data for bonus where we have years and the corresponding bonus

Q: Give three instances when RFID might be preferable over bar codes.

A: Radio Frequency-Identification innovation (RFID): It includes a tag fastened to an item that…

Q: In a mortgage/trust deed form of loan the terms of payment and interest rate would be found on the…

A: Trust Deed is the agreement signed when one person or party wants to purchase a property then for…

Q: You can afford a $900 per month mortgage payment. You've found a 30 year loan at 6.5% interest. a)…

A: Given Monthly mortgage payment A = $900 Time t= 30 years Rate of interest =6.5% compounded…

Q: Is the cash flow broken into four parts? What are they?

A: Answer - Cash Flow - Cash flow means the amount of cash present at a given time which cash used in…

Q: And we took out a loan for 146 days and was charged simple interest rate of 12.5 total interest he…

A: Simple interest is an interest charge that borrowers pay lenders for a loan. It is calculated using…

Q: No chatgpt used i will give 5 upvotes typing please

A: Monthly Payment = P*(r*(1+r)^n)/((1+r)^n-1) Where,P = Principal Amount = $60,000r = Interest rate =…

Q: How much money is in the account now

A: The formula for calculating the simple interest involves multiplying the principal (P) which is the…

Q: What is the U.S 6 month interest rate?

A: In the mentioned question we have been asked about the 6-month interest rate of the U.S.

Q: Suppose you are considering an investment project that requires $800,000, has a six-year life, and…

A: Initial investment=$800000Salvage value=$100000Fixed cost=$532000 per yearVariable cost=$42 per…

Q: Distinguish between Loan and Project Cash Flows?

A: Loan Cash Flows It refers to the borrowing of unsecured nature that is used by small businesses in…

Question

Do not copy from other please.

Exercise 2.3: Income and leisure
Margaret works as a tutor and earns $20 per hour of tutoring. She has no other source
of income.
a. Let L denote the leisure hours (hours spent not tutoring) per day and let I denote the
daily income (total earnings) in dollars. Each day has 24 hours. Write an equation
relating L and I.
b. Graph the relationship between L and I with L on the horizontal axis and I on the
vertical axis. Label the axes, the intercept values, and the slope of the line.
c. What is Margareť's opportunity cost of leisure?
Suppose now that Margaret can tutor up to 8 hours only each day. However, she can
also earn $15 per hour doing freelance writing work.
d. Graph the new relationship between Land I, with L on the horizontal axis and I on
the vertical axis. Label the axes, the intercept values, kink points, and the slope of
each line segments.
e. What happens to Margaret's opportunity cost of leisure as she spends more time on
leisure?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

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

Subject - advanced math Frank's loan pay off is to be made in two installments: $2500 in a year, and $3500 in 3 ½year. After talking to his loan officer, it was decided that he could pay both installments in 20months. How much would he pay if his loan is processed at 7 ¼ simple interest. Draw a timelineto illustrate your solution.
Typed plz and asap thanks
Please don't use excel and show equations used.
You deposit $ 9,030 in an account that pays 3 % simple interest. How much do you have after 4 years? If needed, round your answer to zero decimal places.
Please see attachment and type out step by step the correct answer within 40 minutes , n give explanation of each option given below . Will give thumbs up only for the correct answer. Thank you
$200 is not the correct answer. Please credit my account for the wrong answer provided.
The case of transaction exposure is described as follows. Choose the correct answer in the parenthesis in the description of the case. The choice is in bold letters. My company sold a product to a German co., and sales department signed a contract to receive Euro 10,000 3 month later, A/R of Euro 10,000. The sales contract is delivered to my desk. I, a treasurer, am wondering how much USD my co. will get from Euro 10,000 3 months from now. The currency market is in turmoil, I will get more USD when USD weakens against EUR in the next 3 months. Market anticipates strong USD. However, if USD strengthens more than market expects, I will get (more /less) USD from sales contract of EUR 10,000. Are there any possibility to lock in my USD receipt to a certain level, or at minimum. In that way, my USD receipt will not get any lower even though USD appreciates more than the rate I can contract (buy EURO/sell EURO) now. How and what kind of contracts are available now to protect/hedge…
So what really happens if we don't raise the debit limit? Hmmmm? Good question we have never not done that before... Verbatum question formulated by Eric Kortenhoven. Comment on the question then reply to a fellow student this will be an extra credit and points can be used wherever you would like just let me know where to apply them
Q TFC TVC TC MC AFC AVC ATC $20 $0 1 $20 $15 2 $20 $25 3 $30 4 $6 $8.80