Explain the steps taken to find the solution

Assignment Help Business Economics
Reference no: EM131416013

In the consumption/leisure model, let the consumer's utility function be u(L,c)=Lc . Assume that no unearned income is received. Can you show that the daily labour supply curve is L*(w)=12 hours ? [That is, this consumer's preferences are such that, regardless of the wage rate, he wants to work exactly half his day.]

It is not a maths exam, so equations alone are not enough, you need to provide a few sentences to explain the steps taken to find the solution.

Reference no: EM131416013

Questions Cloud

Forecasted the demand for gas : In the Columbia Gas of Ohio study that forecasted the demand for gas, the compnay developed the following coefficients for their equaion:
How does the sr relate to supplier/contractor risks : When establishing multiple incentives under incentive contracting, what steps would you follow? How will you determine the specific factors or characteristics on which to establish incentives?
Conduct a phone or personal interview : Conduct a phone or personal interview with a current or past manager. Ask this person to describe the role that training plays in the company and where he or she thinks the future of training is headed for the organization.
Are the clauses in the written contract conditions : SP42016:One of these is Mickey who is the fastest rising soccer star in Australia and likely to be signed by Manchester United next year. He is currently 16 years old and happens to be Adam's nephew. He agrees to come to your event and because ..
Explain the steps taken to find the solution : It is not a maths exam, so equations alone are not enough, you need to provide a few sentences to explain the steps taken to find the solution.
Whether the random variable is discrete or continuous : If you know that the number of possible values a random variable can have is finite, do you know whether the random variable is discrete or continuous?
What are the crises related to low-income households : What are the crises related to low-income households? Discuss the housing conditions related to extremely low income renters and households
What is meant by postproduction support : There are various types of contract structures that can be imposed through the contract negotiation process to include FFP, FP, CPFF, CPIF, cost sharing, and time and material. Describe each and include some discussion as to applications.
Essential communication : These cues may enable us to tell whether an individual is telling the truth or uttering words of deception - The writer posits that incorporation of dialogues in either in writings or speeches motivates the audience the most.

Reviews

Write a Review

Business Economics Questions & Answers

  Illustrate what is the value of net investment

Illustrate what is the value of gross private domestic investment. Illustrate what is the value of net investment.

  Lowering the price of either haircuts or alcoholic drinks

Supposed you own a barbershop/saloon. You are considering lowering the price of either haircuts or alcoholic drinks. The actual elasticity of demand for haircuts o 1.36 and for alcoholic drinks is 0.62. which price should you lowers? Explain

  Software developers to develop software for the platform

When the Macintosh computer was introduced in 1982, Apply made it difficult for third party software developers to develop software for the platform. In contrast, Apple made it relatively easy for third party developers to make applications that ran ..

  Automatic stabilizers change the federal budget balance

If automatic stabilizers change the federal budget balance by 70 billion for every one percent change in Real GDP growth what will happen to the federal budget balance at the economy falls into recession of -3 % from a growth path of + 2%

  Which of the two countries has higher relative wage

Suppose Australia is a capital (K)-abundant country, and Sri-Lanka is a labor (L)-abundant country. Both produce labor and capital intensive goods with the same technology. Which of the two countries has a higher relative wage, w/r, before trade? Wou..

  What is your best choice of repair hourtising

Suppose that in addition to repairing your car, you can also spend money advertising. If you repair your car for Hours and spend A dollars advertising, your benefit (the amount you receive when you sell your car) is B(H,A)=220H-H^2+2A. What is your b..

  What is the marginal rate of substitution (mrs) and why does

What is the marginal rate of substitution (MRS) and why does it diminish as the consumer substitutes one product for another? Use examples to illustrate.

  What might prompt the government to establish this price

what might prompt the government to establish this price ceiling? next suppose that the government establishes a price floor of $4.60 for wheat. what will be the main effects of this price floor?

  The inflation rate in each of the two years

Suppose that in 1960 Joe’s grandfather had a starting salary of $20,000 per year. In 2013 Joe graduated from college, got a job, and had a starting salary of $40,000. You need to know the inflation rate in each of the two years to figure out who is b..

  What should fed do to keep the federal funds rate unchanged

Using the supply and demand analysis of the market for reserves, indicate what happen to the federal funds rate under the following situations: The Treasury has just paid a large bill to defense contractors and as a result its deposits with the Fed f..

  Is the laundry practicing price discrimination

A woman complained to "Dear Abby" that a laundry charged $1.25 each to launder and press her husband's shirts, but for her shirts - the same description, only smaller - the laundry charged $3.50. When asked why, the owner said, "Women's blouses cost ..

  Spreadsheet represents short term production

Notice on the spreadsheet, the amount of capital in the spreadsheet stays constant at 4 while the amount of labor varies from 0 to 30. Choose all that are correct. The constant amount of capital denotes that the spreadsheet represents short term prod..

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