Let y represent income and l represent hours of leisure, Ask an Expert

Economics

Let Y represent income and L represent hours of leisure. Mike's utility for income and leisure is U(Y,L) = Y x L so that marginal utility of leisure = Y and the marginal utility of income = L. Total hours available for leisure and work in any given week = 80. He earns $15 per hour.

A) Calculate mike's optimal amount of income and leisure if he has no non labor income.

B) If the government starts a income maintenance policy that pays $X to all non workers and $0 to all workers, at what value of $X will Mike opt out of the labor force and go on welfare.

View complete question

Business Economics, Economics

Category:- Business Economics
Reference No.:- M91421467

Have any Question?Write your Review or question?

Related Questions in Business Economics

Assume p 65 - 2q the cost per additional unit mc is zero

Assume P = 65 - 2Q. The cost per additional unit (MC) is zero for the first five units, and then $5 per unit after that. There are fixed costs of $50. Once the optimal level of output is determined, how much profit does ...

Three friends tom jerry and mary were having coffee in the

Three friends, Tom, Jerry and Mary were having coffee in the GOSSIP CAFÉ and were discussing their job prospects. Tom told his mates that he has just resigned from his current job because he worked long hours and did not ...

What is the supply curve how do you apply the law of supply

What is the supply curve, how do you apply the law of supply in economics?

A population has a mean mu83 and a standard deviation

A population has a mean μ=83 and a standard deviation σ=26. Find the mean and standard deviation of a sampling distribution of sample means with sample size n=247.

Do you think that the taxicab industry in large cities

Do you think that the taxicab industry in large cities would be subject to significant economies of scale? Why or why not?

What is the average depth of the human vaginal

What is the average depth of the human vaginal cavity?

What steps do i take to calculate at what prices would

What steps do I take to calculate, At what prices would Google have to close in order for it to be considered statistically unusual? You will have a low and high value. Use the definition of unusual from the course textb ...

Im looking for someone to explain how to use excel for the

I'm looking for someone to explain how to use excel for the following questions based on the senario: Use 0.10 as the significance level (α). Conduct a one-sample hypothesis test to determine if the networks should annou ...

Inverse elasticityimagine youve started a new pizza

Inverse Elasticity: Imagine you've started a new pizza restaurant. It costs you about $3 to produce a pizza. Last week you sold 450 pizzas for $12 each. This week you raised your price and sold 300 pizzas for $16 each. ...

According to kulish what is about the design of the euro

According to Kulish, what is about the design of the euro currency that lessens its appeal compared to prior national currencies?

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Business Economics Expert