If Mamata was able to work 24 hours a day she could produce 4 tonnes of...

If Mamata was able to work 24 hours a day she could produce 4 tonnes of rice (the principal food crop cultivated in West Bengal) each day. You are told that Mamata’s utility maximising choice is to work for 8 hours and produce 3 tonnes of rice.

Now you are informed that Mamata is no longer an independent farmer. Instead, she works as a bargadar and rents the land on which she works from a landowner and keeps 75% of the rice that she produces (as is the case after the adoption of Operation Barga).

Q7 Using your answer to Q6 as a starting point, show (on a separate model) Mamata’s new optimal choice as a sharecropper. Again, be sure to label and define each of the relevant points and lines on your diagram. List each of the assumptions you made when developing your model.

Q8 Discuss how the models developed in Q6 and Q7 can be used by economists to evaluate the fairness of economic outcomes?

Expert Solution

Rahul Sunny answered 1 hour ago

Consider an individual with total hours o t=24 per day. She is paid $10 per hour...

Consider an individual with total hours o t=24 per day. She is paid $10 per hour during the required 8 hours of working each day. She is also willing to work 2 extra hours per day, and gets paid $20 per hour for the overtime working. Explain the preferences of a worker and abusiness owner between overtime premium and straight-time equivalent. Your response should include a discussion of the income effect and the substitution efect.

A copy machine is available 24 hours a day. On a typical day, the machine produces...

A copy machine is available 24 hours a day. On a typical day, the machine produces 88 jobs. Each job takes about 3 minutes on the machine, 2 minutes of which is processing time and 1 minute is setup time (logging in, defining the job). About 23 Percent of the jobs need to be reworked, in which case the setup time and the processing time have to be repeated. The remainder of the time, the equipment is idle. What is...

24 hours a day, there are workers who use 16 hours of leisure (L) and labor...

24 hours a day, there are workers who use 16 hours of leisure (L) and labor (E), excluding 8 hours of sleep. It benefits from the workers' leisure (L) and consumption (C). The utility function of this worker is U(L, C)=L*C. The worker's hourly wage is 10 and the given non-earned income is 10. When both labor and capital income are used for consumption (C), find consumption C that maximizes utility of workers. (However, the price of consumer goods is...

Beth Corbin’s regular hourly wage rate is $16, and she receives an hourly rate of $24 for work in excess of 40 hours.

Beth Corbin’s regular hourly wage rate is $16, and she receives an hourly rate of $24 for work in excess of 40 hours. During a January pay period, Beth works 45 hours. Beth’s federal income tax withholding is $95, she has no voluntary deductions, and the FICA tax rate is 7.65%. Compute Beth Corbin’s gross earnings and net pay for the pay period.

A grocery store is open 24 hours a day, seven days a week. It has the...

A grocery store is open 24 hours a day, seven days a week. It has the following daily requirements for cashiers: Time Minimum # of cashiers 0100 – 0400 7 0400 – 0700 4 0700 – 1000 9 1000 – 1300 12 1300 – 1600 15 1600 – 1900 17 1900 – 2200 19 2200 – 0100 13 A cashier may start work at the beginning of any one of the shifts and, having begun, works 9 consecutive hours. Each...

A hospital does many surgeries in a day. A standard hospital is open 24 hours with...

A hospital does many surgeries in a day. A standard hospital is open 24 hours with no breaks in a day. In examining patient flow and surgery process in a 2 hour period. Let us assume a long lineup of over 1000 people waiting for surgery. Surgery involves the following steps: A. Check driver's licence, 60s on average exponential distribution. B. Talk with patient about preexisting health problems, which is 90s. C. Doing the surgery, which takes 180s or 3...

Suppose that workers are able to adjust the number of hours they work however they wish....

Suppose that workers are able to adjust the number of hours they work however they wish. If a tax is levied on wages and a worker does not change the number of hours she works, then which of the following statements is TRUE? The substitution effect exceeds the income effect OR the income effect exceeds the substitution effect? Will the income effect be equal to the substitution effect or we might not see any income effect? Thank you!

A ?firm's technology requires it to combine 4 labor hours with 3 machine hours to produce...

A ?firm's technology requires it to combine 4 labor hours with 3 machine hours to produce 1 unit of output. So capital and labor are perfect complements. So the production function is f(E,K) = min(E/4,K/3). The ?firm wants to produce q units of output, where q > 0 is some number. Suppose the price of capital is $10 per machine per hour. What combination of inputs will the ?firm use if the wage rate is $10 per hour? What combination...

Trish must be at work exactly 40 hours/week where she earns $13/hour. While at work she...

Trish must be at work exactly 40 hours/week where she earns $13/hour. While at work she can engage in either Hard Work Hours or Easy Work Hours (where Hard Work Hours = 40 – Easy Work Hours). Trish earns a $24/hour commission for each hour of hard work she engages in, and also receives a $191 bonus if she engages in at least 30 hours of hard work in a given week. What is the vertical value of the vertical...

-----A business owner makes 1000 items a day. Each day she spends 8 hours producing those...

-----A business owner makes 1000 items a day. Each day she spends 8 hours producing those items. If hired, elsewhere she could have earned $250 an hour. The item sells for $15 each. Production occurs seven days a week. If the explicit costs total $150,000 per month, what is her economic profit? a. ?$240,000 b. ?$60,000 c. ?$300,000 d. ?$450,000 ----------------------------------------------------------------------------------------------

Question