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3. (20 pts) Aliyah is preparing to expand her IT consulting company. The current market rate for IT professionals is $58,000 per year. Each employee
3. (20 pts) Aliyah is preparing to expand her IT consulting company. The current market rate for IT professionals is $58,000 per year. Each employee she hires will also require a computer and equipment that costs $6,000 per employee annually. Hiring more employees means that Aliyah can provide consulting services to more clients each year. Each client Aliyah has will pay her S10,000 per year. The number of clients Aliyah can take on is dependent on the number of workers she hires as shown in the accompanying table. What is the marginal cost and marginal benefit of hiring cach worker? Using the Rational Rule to maximize her economic surplus, how many workers should Aliyah hire? Number of worken Clients per year 0 0 1 11 20 27 32 PART 2 - DEMAND 4. (20 pts) Consider Ron's demand for after school care for his children. The marginal benefit Ron receives for every hour of childcare is provided in the accompanying table. Using the Rational Rule for Buyers, if an hour of childcare costs $24. how many hours would Ron purchase each day? What about for S18 per hour? Draw Ron's marginal benefit curve and his demand curve. Hours of after school Marginal benefit childeare preber) 532 SO S20 514 5. (20 pts) You own the only pharmacy in the small town of Jackson City, which has 40,000 residents. You would like to get a sense of what the local demand is for seasonal allergy medicine so you can determine how many packages to keep in stock and what price to charge. You conduct a survey of four residents of Jackson City, asking them about the quantity of allergy medicine they would buy each allergy season at various prices. Their responses are shown in the accompanying table. Estimate and graph the demand for the entire town of Jackson City Dashboard Calendar To Do Notifications Inbox
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