Suppose you get two job offers when you graduate. First offer is in LA and pays...
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Suppose you get two job offers when you graduate. First offer is in LA and pays $12,000 per month. The price of food in LA is $1.5 and price of housing is $3. The second offer is in San Francisco and pays $16,000 where price of food is $2.5 and price of housing is $2.5 respectively. If your utility function is U (F, H) = F¹/4H³/4, which job should you pick? Suppose you get two job offers when you graduate. First offer is in LA and pays $12,000 per month. The price of food in LA is $1.5 and price of housing is $3. The second offer is in San Francisco and pays $16,000 where price of food is $2.5 and price of housing is $2.5 respectively. If your utility function is U (F, H) = F¹/4H³/4, which job should you pick?
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The job you should pick is the job in San Francisco This is because the utility of th... View the full answer
Related Book For
Macroeconomics Principles, Applications, and Tools
ISBN: 978-0132555234
7th Edition
Authors: Arthur O Sullivan, Steven M. Sheffrin, Stephen J. Perez
Posted Date:
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