Suppose you have two different job offers. The first offer is in LA and pays $8100 per month. The price of food (F) in LA is $2 and the price of housing (H) is $12. The second offer is in San Francisco and pays $9600. Both food and housing are more expensive in SF at PF = 3 and PH = 14 respectively. If your utility function is U (F, H) = F0.3 H0.7 which job offer should you accept please graph your reasioning.
Suppose you have two different job offers. The first offer is in LA and pays $8100 per month. The price of food (F) in LA is $2 and the price of housing (H) is $12. The second offer is in San Francisco and pays $9600. Both food and housing are more expensive in SF at PF = 3 and PH = 14 respectively. If your utility function is U (F, H) = F0.3 H0.7 which job offer should you accept please graph your reasioning.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Suppose you have two different job offers. The first offer is in LA and pays $8100 per month.
The price of food (F) in LA is $2 and the price of housing (H) is $12. The second offer is in San Francisco and pays $9600.
Both food and housing are more expensive in SF at PF = 3 and PH = 14 respectively.
If your utility function is U (F, H) = F0.3 H0.7 which job offer should you accept please graph your reasioning.
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