Suppose a worker is offered a wage of $ 5 per hour, plus a fixed payment of $ 40. What is the equation for the worker â€TMs opportunity set in a given 24 hour day? What is maximum total earning the worker can earn in a day? The minimum? What is the price to the worker of consuming an additional hour of leisure?
A batch of 500 machined parts contains 10 that do not conform to customer requirements. Parts are selected successively, without replacement, until a nonconforming part is obtained. The random variable is the number of parts selected.
Explain what occurs when a new technology makes another one obsolete in terms of economic profit. Consider firm A to be an existing firm using the old technology. Firm B is the new firm with the new technology. Firm A earned positive profits for years, but with the entrance of Firm B, Firm Aâ€TMs goods and services are no longer desired.