Number of hours he would like to have for leisure

Assignment Help Macroeconomics
Reference no: EM131239300

Terry's utility function over leisure (L) and other goods (Y)is U(L, Y) = Y + LY. The associated marginal utilities areMUy = 1 +Land MUL = Y. He purchases other goods at aprice of $1, out of the income he earns from working. Showthat, no matter what Terry's wage rate, the optimal number ofhours of leisure that he consumes is always the same. What is the number of hours he would like to have for leisure?

Reference no: EM131239300

Questions Cloud

Discuss chemical properties of relevant to the incident : Identification of the hazardous material(s) involved and hazardous classification, discussion of chemical properties and interactions relevant to the incident/project, any short or long-term mitigation implemented.
The economy is beginning to slip into a recession : The economy is beginning to slip into a recession.? Further, data indicate that inflation is low. The Fed will most likely respond to this state of the economy by
Case scenario between marginal revenue-total revenue : What is the best case scenario between Marginal Revenue and Total Revenue? Do we want Total Revenue to be maximized and Marginal Revenue to be equal to zero or do we want Total Revenue to be rising and Marginal Revenue to be positive?
What is the social construction of reality : Define social class? How is social class determined? How is social class used in the film? How many social classes can you identify in the film? (Ask yourself if I would really ask the question if the answer is really two!) How are the classes dis..
Number of hours he would like to have for leisure : Showthat, no matter what Terry's wage rate, the optimal number ofhours of leisure that he consumes is always the same. What is the number of hours he would like to have for leisure?
Complete the given three reactions : Complete the three reactions shown below that are taking place throughout the experiment. pleas balance them. Li2CO3+ H3C6H5O7 →, Na2CO3+ H3C6H5O7 → and K2CO3+ H3C6H5O7 →.
Exact real interest rate : Suppose that John lent $2000 to a friend in 2010 and charges his friend a nominal interest rate of 15% (the loan is repaid in 2011). We measure John's real wealth in terms of one good: hotdogs. The price of each hotdog is $25 in 2010 and $30 in 20..
Equilibrium conditions for competitive firm and the monopoly : Suppose that c=0, the discount factor is ρ (rho), and demand is constant elasticity, y = p^-η. Write the equilibrium conditions for the competitive firm and the monopoly in this case. For the monopoly equilibrium condition to be sensible, what restri..
Diagrammatically-algebraically cases of unitary elasticity : Show diagrammatically and algebraically cases of unitary elasticity, as discussed in class. Connect these with pertinent examples involving products and services.

Reviews

Write a Review

Macroeconomics Questions & Answers

  Explain case of a perfect-complements production function

Assume two inputs, K and L. Illustrate the following cases with two graphs: (1) the substitution effect on labor hired due to a wage increase is zero. (2) the scale effect on labor hired due to a wage increase is zero.

  Discussion about stakeholders and potential winners

As the health care reform debate moves forward, there has been a lot of discussion about stakeholders and potential winners and losers. Prepare a PowerPoint presentation containing 10-15 slides in which you:

  The company provides the broker with an infrastructure

the company provides the broker with an infrastructure, such as clerical support, phone services, and office space, and especially for new brokers, a base wage.

  Explain why are there significant disparities

Explain why are there significant disparities in the cost of living throughout the US.

  Illustrate what economic policy should be adopted

Illustrate what economic policy should be adopted by regions with persistent economic problems.

  Illustrate what will happen in the short run

Illustrate what will happen in the short run and long run to the world real GDP and the price level. Moreover, describe what policymakers could do after this has happened.

  Explain the types of goods

Due to an increase in her rent, Isa needs to cut back her spending on other items. Which type of goods will Isa consume less of.

  Calculate the labor rate also efficiency variances for the m

Calculate the labor rate also efficiency variances for the month. Was paying workers the actual wage rather than the standard wage an efficient strategy for Loring.

  Check if algebraic solution is consistent

Find the equilibrium price and quantity algebraically and check that your solution is consistent with your sketch. c) If the government imposes a fixed tax of £8 on each unit of a good, show how the supply curve is affected both algebraically and..

  Calculate the arc cross or elasticity of two products

Assume that demand for product A can be expressed and demand for product B can be expressed.  Suppose the price of product B increases. What happens to the quantity demanded of both products.

  Would banning negext increase or decrease welfare

a. Find the equilibrium price and quantity. Compute consumer surplus, producer surplus, and totalsurplus in the market equilibrium. b. For each unit of Negext produced,4 units of pollution are emitted, and each unit of pollutionimposes a cost on s..

  Why do you think companies invested in this janitor insurace

Your friend tells you that she read an article about something called “janitor's insurance.” The article said that companies took out life insurance policies on some, if not all, of their employees

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