Login

Create Account
+14156709189
info@expertsmind.com
Submit Homework/Assignment
Get quote & make Payment
Get Solution
The appropriate resource constraint, Mathematics, Microeconomics
Consider a person''s decision problem in trying to decide how many children to have. Although she cares about children and would like to have as many as possible, she knows that children are "costly" in the sense that there are costs to their upbringing as well as the time that she will have to take off from work in order to have children. Her utility function over her own consumption (x), her own leisure (l) and the number of children (n) is given by the following utility function:
U(x,l,n) = x1/6l1/6n1/6
For tractability (and to be able to use calculus), we will assume that the number of children, n is a continuous variable (i.e. it can take any nonnegative value, including decimal values like 2.15 etc.). This individual is endowed with a total of T units of time in her life, which she can divide between working, leisure and having children. For having each child, she will have to take time t off from work, during which she will not earn anything. Besides this, there is a per child cost of n for upbringing expenses.
Her wage rate is w; she uses her total income to purchase good x for her own consumption, as well as to provide for the upbringing expenses of her children. Assume that good x is priced at p per unit.
(a) Write the consumer''s optimization problem with the appropriate resource constraint, and derive her Marshalian demand for children n.
[Hint: Instead of redoing the whole calculations, can you make use of your results from Problem 1?]
(b) Suppose the government introduces child benefits i.e. for every child she has, the government provides her an amount s. How will this affect her decision on how many children to have i.e. is dn/sn greater or less than 0?
Posted Date: 10/12/2016 11:06:43 AM  Location : Canada
Ask an Expert
Related Discussions:
The appropriate resource constraint, Mathematics, Assignment Help, Ask Question on The appropriate resource constraint, Mathematics, Get Answer, Expert's Help, The appropriate resource constraint, Mathematics Discussions
Write discussion on The appropriate resource constraint, Mathematics
Your posts are moderated
Write your message here..
Related Questions
Marshalian demand, determination of optimal solution mathematical presentat...
determination of optimal solution mathematical presentation
Strategic importance of supply chain management, Strategic Importance of Su...
Strategic Importance of Supply Chain Management This describes the scope of supply chain management (SCM), including the management of procurement, logistics and materials. It
Control of monopolies and restrictive trade practices, Control of Monopolie...
Control of Monopolies and Restrictive Trade Practices Monopoly hampers economic growth by lowering output and increasing prices and has an antisocial impact. In India, the Monopo
Hotelling model, hello can anyone help me..
hello can anyone help me..
Economic development , Economic Development The word development is f...
Economic Development The word development is from the Latin root ‘Voloper’ which meant wrap up, envelop. The English used this word along with ‘des’ meaning ‘undo’. The word
Engineering production function, a description of engineering production fu...
a description of engineering production function
What is Critical Temperature?, What is What is Critical Temperature? Why Cr...
What is What is Critical Temperature? Why Critical Temperature is Specified in Equation? Describe critical temperature specification...
Microeconmics, #question.suppose the # of producers of electric cars increa...
#question.suppose the # of producers of electric cars increases causing the supply curve to shift to the right. If the demand curve stays stationary what will happen to the produce
Chamberlin’s model of stable equilibriumle.., definition
definition
True False question, 1. Cost minimizing firms must be profit maximizing as ...
1. Cost minimizing firms must be profit maximizing as well. False, why??
Assignment Help
Accounting Assignment Help
Economics Assignment Help
Finance Assignment Help
Statistics Assignment Help
Physics Assignment Help
Chemistry Assignment Help
Math Assignment Help
Biology Assignment Help
English Assignment Help
Management Assignment Help
Engineering Assignment Help
Programming Assignment Help
Computer Science Assignment Help
IT Courses and Help
ExpertsMind Services
Online Tutoring
Projects Assistance
Exam Preparation
Coursework Help
Programming Courses
Engineering Courses
Why Us ?
~Experienced Tutors
~24x7 hrs Support
~Plagiarism Free
~Quality of Work
~Time on Delivery
~Privacy of Work