What is the highest level of migration costs

Assignment Help Microeconomics

Reference no: EM132180342

Question: Suppose a worker currently resides in Pennsylvania and is deciding whether to remain there or to move to Illinois. There are three work periods left in the life cycle. If the worker remains in Pennsylvania, he will earn $20,000 per year in each of the three periods. If the worker moves to Illinois, he will earn $22,000 in each of the three periods. Finally, the worker's rate of discount is 10 percent. What is the highest level of migration costs that a worker is willing to incur and still make the move?

Reference no: EM132180342

Questions Cloud

Oversight of economic activities : Why the government regulation and oversight of economic activities is needed?

What could go wrong with the capital budgeting process : Discuss how the information should be organized in a capital budgeting process, and who will use the information for decision-making.

Creating safe working environment : How does 5 S approach improve quality? Explain with examples. Explain with examples the roles of 5S in creating safe working environment.

Internet usage and consumer behaviors : There have been many data security breaches in the past few years where your personal information may have been stolen from credit card companies

What is the highest level of migration costs : Suppose a worker currently resides in Pennsylvania and is deciding whether to remain there or to move to Illinois. There are three work periods left.

Describe negative experience : Describe an example of when your participation in a group contributed to effectiveness; describe a negative experience.

Examine the necessity for a leader to have good out-group : Examine the necessity for a leader to have good out-group member skills, as well as the ability to handle conflict and overcome obstacles.

Implications of forecast error on supply chain management : Find an example of a product you have recently purchased. What are the implications of forecast error on supply chain management?

Problem on two types of jobs in the labor market : Suppose there are two types of jobs in the labor market: "safe" jobs and "risky" jobs. Describe how the worker decides whether to accept a safe job.

User Account

All Pages