Completed quickly and followed instructions given. Grammar, spelling, etc. was all good as well. Thank you so much! Will hire in the future.
looking for someone to solve these questions.
1. Shelly’s preference for consumption and leisure can be expressed as
U(C,L) = C * (L-20)
There are 120 hours in the week available to split between work and leisure. Shelly earns $ 10 per hour after taxes. She also receives $ 500 worth of benefits each week regardless of how much she works.
a) Graph Shelly’s budget line
b) What is Shelly’s marginal rate of substitution when L=100 and she is on her budget line?
c) What is Shell’s reservation wage?
d) Find Shelly’s optimal amount of consumption and leisure
e) Derive the formula that C/L = -(MUX= MUC)
2. A firm faces the following inverse demand curve
Where P is the price of output and Q is the number of outputs sold per hour. This firm is the only employer in town and faces an hourly supply of labor given by:
Where w is the hourly wage rate and E is the number of workers hired each hour. Each worker produces 5 outputs per hour. How many workers should the firm hour to maximize its profit? What wage will it pay? How much will it charge for each output? What is the profit level of the firm?
3.Suppose the wage rate is $40 per hour and the rental rate of each unit of capital is $20. The price of output is constant at 80$ per unit. Initial capital level is 25. The production function is
– f(E,K) = E1/2K1/2
a) How much labor should the firm employ in the short run?
b) How much labor should the firm employ in the long run?
c) Repeat part (a) when the wage rate is $10
d) Repeat part (b) when the wage rate is $10
e) Find the elasticities of short run and long run labor demand curves.
f) according to the theory, which one should have a higher elasticity in absolute terms, short run or long run labor demand curve? Is you finding in part e) consistent with the theory?
Now assume production function is
– f(E,K) = E1/3K1/5
g) if you repeat part(b) with this new production function, for optimal E AND K, we/r k = ? (do not need to solve for optimal E and K.)
Now assume production function is
f(E,K) = E1/3K2/3
h) if you repeat a) and b) with this new production function, can you find the solution? You do not need to solve, just state if it is solvable or not and why?
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.Read more
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.Read more
Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.Read more
By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.Read more