Derive janes marginal rate of return schedule

Reference no: EM13700915

If Jane gets one year of college she will earn $20 per hour. If Jane gets two years of college she will earn $22 per hour. If Jane gets three years of college, she will earn $24 per hour. If Jane finishes college, she will earn $25 per hour. Jane’s discount rate is 6 percent per period.

a. Derive Jane’s marginal rate of return schedule.

b. How many years of schooling will Jane get? Why?

Reference no: EM13700915

Questions Cloud

Considering lowering price of its min vans to promote sales : A car dealership is considering lowering the price of its min vans to promote sales. However, it worries that this will reduce sales of it station wagon autos. It finds the cross product of demand to be 1.5. Are its concerns legitimate? Explain.

Free-market republican argues against the pigouvian tax : A free-market republican argues against the Pigouvian tax by pointing out that the conditions necessary for the Coase Theorem to produce an efficient equilibrium are present in this situation. Assuming that the republican is correct, describe two met..

Government have a bad reputation of being inefficient : Why does the government have a bad reputation of being inefficient? And if it is inefficient in some areas and not others, does that mean they should privatize the inefficient responsibilities?

High-ability and low-ability : Suppose there are two types of workers: high-ability and low-ability. Workers know their own abilities but firms do not. A high school diploma costs a high-ability person $10,000 and costs a low-ability person $15,000.

Derive janes marginal rate of return schedule : If Jane gets one year of college she will earn $20 per hour. If Jane gets two years of college she will earn $22 per hour. If Jane gets three years of college, she will earn $24 per hour. If Jane finishes college, she will earn $25 per hour. Jane’s d..

Currently considering two alternative education-work options : John lives for three periods. He is currently considering two alternative education-work options. Alternative 1: he can start working immediately, earning $100,000 in period 1, $110,000 in period 2, and $120,000 in period 3.

What is the gross return on the investment : Purdue’s 20 year net Return on the Investment is $591,700 and the total 4 year cost is $91,300. What is the gross return on the investment?

A proposal has been put forward to remove a dam on a river : A proposal has been put forward to remove a dam on a river, which currently produces hydroelectric power. You have been hired to estimate the benefits of this action. List several benefits, and how would you go about measuring each benefit.

Demand curve facing original ethiopian restaurant : Suppose that a restaurant offering Ethiopian cuisine opened in a well diversed city. And became a great success. What would you predict would happen in the restaurant market for that city?

User Account

All Pages