Preferences for consumption and leisure

Assignment Help Business Management
Reference no: EM131217663

Jessica's preferences for consumption and leisure can be expressed as U(C,L)=(C-100)x(L-40)

There are 110 hours in the week to split between work and leisure. Jessica earns $10 per hour after taxes. She also receives $300 worth of welfare benefits regardless of how much she works.

(a) Write equation for Jessica's budget line. Graph Jessica's budget line

(b) Explain in words what Jessica's marginal rate of substitution represents. What is her MRS when L=50 and she is on her budget line (i.e. she exhausts her budget).

(c) What is Jessica's reservation wage? Explain in words what this reservation wage represents.

(d) Find Jessica's optimal amount of leisure and consumption. Give two intuitive explanations for why this is her optimal allocation.

Reference no: EM131217663

Questions Cloud

Define the effects of that technology on society : Define the effects of that technology on society. There is a date boundary for this paper - 1850 to present day. As an example you could examine what effect the telegraph had on society.
Identify current social trends related to the campaign : Identify unique challenges for the company and recommend how new media tools can address these challenges.- Identify current social trends related to the campaign.
Jessica marginal rate of substitution represents : (a) Write equation for Jessica's budget line. Graph Jessica's budget line. (b) Explain in words what Jessica's marginal rate of substitution represents. What is her MRS when L=50 and she is on her budget line (i.e. she exhausts her budget).
Firms wants their firms logo on package-traditional costing : The management of Pacific Wellness Centre, a health food company, recently wants to analyze the cost of two of its famous customized products. The customization is not so much on the content but rather on the packaging as some of the firms wants thei..
Preferences for consumption and leisure : Jessica's preferences for consumption and leisure can be expressed as U(C,L)=(C-100)x(L-40) There are 110 hours in the week to split between work and leisure. Jessica earns $10 per hour after taxes. She also receives $300 worth of welfare benefits..
What do you believe should be the ultimate decision : "As Amy, what would be your decision? As Jennifer, what would be your decision? What are the differences between the points of view? What do you believe should be the ultimate decision?"
Identify correctly all financing sources of the company : FNRE315 Financial Reporting Assignment. -Identify correctly all financing sources of the company: leverage, equity issuing. Describe in details of the company's financing sources were given. Short term debt, intermediate term debt, long term debt
Adjustments in good journal entry format : Prepare the following adjustments in good journal entry format.
Approaching ethics from a utilitarian framework : Approaching ethics from a utilitarian framework, discuss whether or not the management of Sunbeam was unethical in issuing financial statements that improperly timed Sunbeam's revenue recognnition. Identify the major stakeholders in this case.

Reviews

Write a Review

Business Management Questions & Answers

  A business article from an online credible printed business

Find a business article from an online credible printed business source (Wall Street Journal, a Business Journal, etc.). In a one-page paper, discuss the main points in the article and relate that to the topic of business noted. Discuss the im..

  Global implications of the company actions

Identify the global implications of the company's actions, especially considering the media coverage.

  Percentiles for the standard normal distribution

Because P(z .44) = .67, 67% of all z values are less than .44, and .44 is the 67th percentile of the stan- dard normal distribution. Determine the value of each of the following percentiles for the standard normal distri- bution (Hint: If the cumu..

  What is your recommended low cost

What is your recommended low-cost customer service employee daily assignment schedule?- What are your underlying assumptions and any qualitative factors that you believe are involved?

  Explanation to health care management

Describe factors relevant to quality of care, reducing and controlling hazards and risks, preventing accidents and injuries, and maintaining safe workplace conditions.

  What does this tell us about people

a.) What does this tell us about people? b.) Can you think of other areas where that may be the ease?

  Process and outputs to end the process

Create a process map/flow chart for one (1) of the following three activities: You can use either Microsoft Word or Visio to create this flow chart.

  Illustrate what possible things could go wrong

Your strata are defined geographically also consist of three areas. These are inner city, close out skirts, also suburbs. Illustrate what possible things could go wrong?

  Calculate the cost of trade credit

The credit terms offered to your firm by a supplier are 2.8/6 net 30. Calculate the cost of trade credit if your firm does not take the discount and pays on day 30.

  Have you ever wavered with your decision-making

1) Have you ever wavered with your decision-making? Have you noticed it in others? 2) How can a leader develop self-trust?

  What do you understand by rbv and vrio framework

The resource based view (RBV) of strategy has a coherence and integrative role that places it well ahead of other mechanisms of strategic decision making.

  What is your total cost estimate

What is your total cost estimate (materials, parts and labor only) for one drill. You can assume a batch size of 10,000 units, for this estimation purpose. Also, you may assume the electronics (circuit board) is a single component for your estimat..

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