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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.

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Rahul Sunny answered 2 years ago
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