Question: Herb wants to work exactly 12hr wk to supplement his graduate
Herb wants to work exactly 12hr/wk to supplement his graduate fellow-ship. He can either work as a clerk in the library at $6/hr or tutor first- year graduate students in economics. Pay differences aside, he is indifferent between these two jobs. Each of three first- year students has a demand curve for tutoring given by P = 10 - Q, where P is the price in dollars per hour, and Q is the number of hours per week. If Herb has the option of setting a two- part tariff for his tutoring services, how many hours per week should he tutor and how many hours should he work in the library? If he does any tutoring, what should his rate structure be?
Answer to relevant QuestionsHarry runs a small movie theater, whose customers all have identical tastes. Each customer’s reservation price for the movie is $5, and each customer’s demand curve for popcorn at his concession stand is given by Pc = 4 ...What practical difficulty confronts laws that try to regulate what questions can be asked of job applicants during employment interviews?At the turn of this century, most banks required tellers to have a high school diploma. Even though the tasks currently performed by tellers in most banks can still be performed by persons who have mastered the high school ...There are two groups, each with a utility function given by U(M) = √M, where M = 144 is the initial wealth level for every individual. Each member of faces a loss of 44 with probability 0.5. Each member of group 2 faces ...If the wages you are offered are uniformly distributed between $75 and $150, and if the cost of looking for another job is $2, what is the minimum wage you should accept?
Post your question