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Business, 20.06.2020 20:57 nateconn9227
31. Consider a worker with a utility function given by the equation U = Y , where Y is total income and U is the level of utility. Assume the individual receives no nonlabor income. *31a. Suppose that Job A pays $5 per hour and involves working 5 hours per day every day during the year. What is the level of utility the person will attain on a daily basis? What will be the average level of utility attained (per day) during the year? *31b. Suppose that Job B also pays $5 per hour but involves working 2 hours per day 50% of the year, and 8 hours per day the other 50% of the year. How many work hours will the person average (per day) during the year? *31c. What level of utility will be attained during the 2-hour days? What level of utility will be attained during the 8-hour days? What will be the average level of utility attained (per day) during the year? *31d. Will the typical worker prefer Job A or Job B? *31e. What wage must the firm with the less desirable schedule pay to just make their job comparable to the job with the more desirable schedule? What would the compensating differential be for accepting the less desirable schedule?
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31. Consider a worker with a utility function given by the equation U = Y , where Y is total income...
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