Solve the labour supply model-replace the utility function

Assignment Help Business Economics
Reference no: EM131003223

Solve the labour supply model, replace the utility function

u(c,1-l)=log(c)+log(1-l) with:

(a) u(c,1-l)=log(c)+b*(1-l), where b is a positive constant;

(b) u(c,1-l)=sqrt(c)+sqrt(1-l).

In each, how does the labour supply depend on the wage? How does it compare to the log utility model? Explain.

Reference no: EM131003223

Questions Cloud

What you think the difference tell us about oriental society : In what ways does the Oriental perspective compare to our modern Western perspective? What do you think the difference tell us about Oriental society of the Early Modern period
Describing why the economic system of communism : It is often said that Animal Farm is a book describing why the economic system of communism failed in a story tale manner. However, after reading it, it seems to be a book that criticizes the totalitarian state that Stalin (Napoleon), had created aft..
Suppose confectioner and doctor share a building for work : Suppose a confectioner (candy maker) and a doctor share a building for work. The confectioner uses half of the building, and the doctor meets with patients in his office in the other half of the building. Suppose the confectioner uses a very loud mac..
Which of the following is not considered a natural resource : Which of the following is not considered a natural resource?
Solve the labour supply model-replace the utility function : Solve the labour supply model, replace the utility function. In each, how does the labour supply depend on the wage? How does it compare to the log utility model? Explain.
Do you agree that sound effects play critical part in movies : Watching the documentaries how how important sound is in movies, performances, and the creative arts world in general was really interesting. Do you agree that sound effects play a critical part in movies and other media
Producers self-interest aligned with the social interest : When is a producer's self-interest aligned with the social interest? This is one of the major questions addressed by economic theory. The previous chapter explored the behavior of profit – hungry producers in a perfectly competitive market. Suppose s..
Supply affect equilibrium prices and quantity within market : Does each event change demand, supply, both, or neither? Explain your choice. Does the event increase or decrease demand and/or supply? Explain your answer. How does this change in demand and/or supply affect the equilibrium prices and quantity withi..
Identify how your company uses inventory : Identify how your company uses inventory. What are three different inventories of products or supplies that the company maintains and What do you think are some key methods that your company could use to manage and track inventory

Reviews

Write a Review

 

Business Economics Questions & Answers

  Real business cycle theory-long­run aggregate demand

In the real business cycle theory, if long­run aggregate supply increases, then long­run aggregate demand increases by

  What fiscal and monetary policy will the central bank

Suppose a country "X" is facing recession. What fiscal and monetary policy will the central bank and the government use to stabilize the economy!! What tools do the central bank and the government have to impact economy!!

  Current price of gasoline at the pump is $1

Suppose the current price of gasoline at the pump is $1 per gallon and that 1 million gallons are sold per month. A politician proposes to add a 10¢ tax to the price of a gallon of gasoline.

  Live on a small island

The remaining ten men are also farmers but they produce coconuts without shovels. Each such farmer can produce 50 coconuts per year.

  Effects on aggregate surplus-consumer and producer surplus

The market demand functions for corn is Qd = 15 – 2P, and the supply function of corn is Qs = 5P – 2.5. Suppose the government gives corn farmers a $0.70 subsidy per bushel of corn. What will be the effects on aggregate surplus, consumer surplus, and..

  Explain how long will it take every capita gdp

If GDP is increasing by 3% every year Explain how long will it take GDP to double. Given the same conditions above, Explain how long will it take Every Capita GDP to double if the population grows at 2%.

  More expensive truck is worth the additional cost

A fleet manager must choose between two trucks to purchase for a company's fleet. The company will keep either truck for 4 years. Truck A costs $29,000 and has a market value of $16,000 after 4 years. Truck B costs $33,000 and has a market value of $..

  Why a foreign acquisition may backfire

Why a Foreign Acquisition May Backfire. Provide two reasons why an MNC’s strategy of acquiring a foreign target will backfire. That is, explain why the acquisition might result in a negative NPV.

  In production theory

In production theory, what distinguishes the short run from the long run? Can these periods be defined in terms of specific lengths of time? Why?

  Illustrate what level of excess reserves does the bank have

Households deposit $5,000 in currency into the bank that is added to reserves. Illustrate what level of excess reserves does the bank now have.

  Why might corporation prefer to obtain financing via bonds

Why might a corporation prefer to obtain financing through bonds instead of stocks In contrast, why might a corporation prefer to obtain financing through stocks instead of bonds

  Explain system of retrospective billing impact health care

What is meant by "retrospective" billing of health care expenses. How can a system of retrospective billing impact health care expenditures

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd