. Jane has just arrived home from college for the summer and her parents tell her...

. Jane has just arrived home from college for the summer and her parents tell her that they will give her $80 a week in spending money. She has realized that it will not be enough for her to go out with her friends so she will have to get a job. She figures out that the leisure time she has available after allowing for sleeping and other essentials is 60 hours a week. She can get a job at a nearby Burger King for $w an hour. Her utility function for leisure (R) and money to spend on consumption (C) is U = 2RC.

a) Draw a graph to illustrate Jane’s optimal choice. Please indicate Jane’s labor supply in the graph.

b) What will be Jane’s weekly labor supply at the wage rate of $w an hour?

c) If Burger King would like to have Jane working for at least 25 hours a week, what wage rate do they have to offer?

Expert Solution

Hey, I've done part b before a, so that it's easier to draw a graph.

Let me know if anything is unclear :)

Rahul Sunny answered 4 months ago

Jane is a newborn. Her parents are planning to contribute $4,000 a year (or possibly less)...

Jane is a newborn. Her parents are planning to contribute $4,000 a year (or possibly less) towards her college fund into an account that will grow at a constant rate of 4.5% a year. Both parents work for the same company that offered to match parental contributions dollar for dollar for the first 5 parental deposits and 30 cents for every parental dollar for subsequent parental deposits, until Jane reaches 19. Once she reaches 19, both the company and parents...

Sam has just celebrated her 25th birthday. On her way home from the Easter Holiday celebrations...

Sam has just celebrated her 25th birthday. On her way home from the Easter Holiday celebrations in Portugal, she was nearly involved in an accident. It was at this point that she realised that she needs to save up for her retirement at the age of 55. She currently has no savings available. When Sam retires, she wants to buy a cattle farm in Portugal that will be valued at R3 500 000 in 30 years. She also wants to...

Janie graduates from high school in 2019 and enrolls in college in the fall. Her parents...

Janie graduates from high school in 2019 and enrolls in college in the fall. Her parents (who file a joint return) pay $14,350 for her tuition and fees. If required, round your computations to the nearest whole value. a. Assuming Janie's parents have AGI of $170,600, what is the American Opportunity tax credit they can claim for Janie? $ b. Assuming Janie's parents have AGI of $68,240, what is the American Opportunity tax credit they can claim for Janie? $...

Janie graduates from high school in 2017 and enrolls in college in the fall. Her parents...

Janie graduates from high school in 2017 and enrolls in college in the fall. Her parents (who file a joint return) pay $5,850 for her tuition and fees. If required, round your computations to the nearest whole value. a. Assuming Janie's parents have AGI of $167,800, what is the American Opportunity tax credit they can claim for Janie? $ b. Assuming Janie's parents have AGI of $67,120, what is the American Opportunity tax credit they can claim for Janie? $...

Janie graduates from highschool in 2019 and enrolls in college in the fall. Her parents (who...

Janie graduates from highschool in 2019 and enrolls in college in the fall. Her parents (who file a joint return) pay $12,225 for her tuition and fees. Assuming Janie's parents have AGI of $172,600, what is the American Opportunity tax credit they can claim for Janie?

2. Jane Summers has just inherited millions from her mother's estate. She is considering investing part...

2. Jane Summers has just inherited millions from her mother's estate. She is considering investing part of these funds in a small catering business. She would need to purchase a delivery van, equipment, and inventory costing $150,000 to equip the business. Jane's marketing studies indicate that the annual net cash inflow from the business will amount to $36,000. Jane wants to operate the catering business for only 6 years. She estimates that the equipment will have a $10,000 salvage value...

Taylor, age 18, is a dependent of her parents. In the current year, she has the following income: $4,000 wages from a summer job

Taylor, age 18, is a dependent of her parents. In the current year, she has the following income: $4,000 wages from a summer job, $1,800 interest from a money market account, and $2,000 interest from City of Boston bonds. a. What is Taylor’s taxable income for the year? b. What is Taylor’s Federal income tax liability for the year?

Robin Mosier had just returned from her psychology class and was eager to tell her roommate...

Robin Mosier had just returned from her psychology class and was eager to tell her roommate about an idea she had. Julie Hansen had taken the same class the previous semester, so Robin was hopeful that Julie could help her out. The psychology professor gave the class an assignment to come up with a research design to test some hypothesis. Robin’s idea came from the job she had held the past summer. Robin began to describe her idea. “Last summer...

A seven-year-old girl has wandered off away from her parents in Disney World. Her parents have...

A seven-year-old girl has wandered off away from her parents in Disney World. Her parents have filed a case with Disney, and the search for their daughter has commenced. The girl is in the Magic Kingdom with probability 1/2, she is in Animal Kingdom with probability 1/3, and she is in Epcot Center with probability 1/6. If she is in the Magic Kingdom, the chance of finding the girl is 1/5. If she is in Animal Kingdom, the chance of...

A parental mystery: Mr. and Mrs. Smith have just arrived home with their new baby. As...

A parental mystery: Mr. and Mrs. Smith have just arrived home with their new baby. As soon as they walk in the door, they get a call from the hospital maternity ward. The nurse who discharged the Smiths is calling to say he is now worried that she sent the wrong baby home with them. They return to the hospital for a battery of blood tests to clear up the confusion. The results are found in the table below: Individual...

Question