Suppose employees maximize utility by working 40 hours per week at an hourly wage of $10, but a firm demands 50 work hours per employee per week. The firm is considering two options to obtain 5 o hours of work from its employees each week: a. pay an overtime premium of $15 per hour for ten overtime hours each week, or b. increase the hourly wage to $11. Draw the two budget constraints on graphs

Q: Consider a consumer with the following utility function for goods X and Y: U(x,y) = 2 - 1 y А. What…

A: Marginal utility is that the added satisfaction that a consumer gets from having another unit of…

Q: if there are 2 products, milk and yoghurt, how can we understand the satisfaction maximization…

A: In the context of consumer choice and satisfaction maximization, a budget line represents all…

Q: 2. Let your utility function be U (X, Y) = VX + VY. M This will give a demand function for X, X (Px,…

A: a. The demand function for Y is given by,…

Q: Number Consumed Total Utility Marginal Utility 0 0 NA 1 9 9 2 19 10 3 27 8 4 35 9…

A: diminishing marginal utility implies that as the consumption of a good increases then the utility…

Q: The law of diminishing marginal utility says that.... ........... as a person consumes more and more…

A: The consumers, or the individuals, or the households purchase goods, and services in order to…

Q: What is the value of Consumer A's marginal rate of substitution (MRS) of concert tickets for popcorn…

A: The utility is the total satisfaction that the consumer derives from the consumption of the…

Q: a)Assume that the typical consumer always spends a small share of her overall budget on Vietnamese…

A: Total customers = 120,000 Price of other products = Pm= $1 Price of Vietnamese Meals = Pv The…

Q: Mrs. Rochester earns $4500 a week and spends her entire income on computers and pastries, since…

A: In microeconomics, the marginal rate of substitution, also known as technical rate of substitution,…

Q: Hannah’s wage rate is initially $10 per hour and she maximises her utility by supplying 8 hours of…

A: Given information Initial wage rate=$10 Work hours=8 New wage rate=$15 New work hour=9 Total…

Q: Units Consumed 0 1 2 3 4 Total Marginal Utility Utility 0 W The value for Z is Multiple Choice -10.…

A: The additional satisfaction or benefit derived from consuming or obtaining one additional unit of a…

Q: maddy is a single mom with a weekly budget of $100. She can spend her weekly income on food and…

A: Consumer theory is referred to the study of how an individual decides on spending their wealth on…

Q: a) Chika has calculated the marginal utility that she derives from her paid employment and from…

A: Chika will assign each extra hour to the activity that provides a greater marginal utility. Marginal…

Q: Explain how MRS = MRT is derived for consumers who want to maximize their well-being utility subject…

A: MRS stands for marginal rate of substitution, and it measures the rate at which a consumer is…

Q: Suppose your only source of income is work and that you are paid $20 per hour. This determines a…

A: Situation 1 Working 40 hours a week at the rate of $20 per hour. Weekly income= hours×rate×week…

Q: uantity of Total roduct A Utility 1 2 3 4 5 6 7 16 30 42 52 60 66 70 Marginal Utility 16 14 12 10 8…

A: A consumer will maximise utility at a point where marginal utility per dollar of good A is equal to…

Q: Find the missing marginal utility: Quantity 3 8 Total Utility 30 55 67 Marginal Utility 10 5 |12 4…

A: Utility: - Utility is the satisfaction derived by any consumer by consuming a good or service.

Q: Answer the question on the basis of the following two schedules, which show the amounts of…

A: "Utility is maximized at a point where the ratio of marginal utility to price of one good equates…

Q: Is it possible for marginal utility to be negative while total utility is positive

A: The total utility (TU) can be understood as the total satisfaction that is derived from consumption…

Q: Juan is currently working in a job that pays $25 an hour and he chooses to work 8 hours per day.…

A: Budget line  The budget line depicts all possible combinations of the two commodities that can be…

Q: Question 5. Suppose Jon has a Utility function U(X,Y)= MIN (5X,Y). The price of good X is $3 and the…

A: We can find out amount of goods by optimal condition of5x=y

Q: At last time you have answered my question ,but I still have some problems want to ask you and there…

A: To understand the concepts of the Indifference Curve and Budget Line, let us first understand the…

Q: do fast

A: The objective of the question is to determine how many units of x1 Katie Kwasi will consume after…

Q: ) Explain by using an example why an MRS (Marginal Rate of Substitution) between two goods must…

A: The MRS is a measurement of how eager a customer is to trade one good for another in order to…

Q: Suppose the price of bananas falls. Explain how the income and substitution effects work in the…

A: The income effect depicts the improvement in the purchasing power of the consumers due to a rise in…