7.4 Suppose Norma will live and work forever and the interest rate i is 10 percent. What does it take to get Norma to migrate

(a) Set NPV to zero in equation(7.5) to solve for the wage gain that leaves Norma indifferent to moving

(b) Assume that the moving cost c (in dollars) increases linearly with distance d (in miles). In particular, let c=1000+d, and use thisequation to express Norma's reservation wage gain as a function ofdistance d

(c) For a move of 400 miles, Norma requires a wage gain of $? per year

Problems 259 7.4 Suppose Norma will live and work forever and the interest rate i is 10 percent. What does it take to get Norma to migrate? Set NPV to zero in equation (7.5) to solve for the wage gain w that leaves Norma indifferent to moving. (a) (b) Assume that the moving cost c (in dollars) increases linearly with distance d (in miles). In particular, let c 1000 + d, and use this equation to express Norma's reservation wage gain as a function of distance d (c) For a move of 400 miles, Norma requires a wage gain of $ per year Norma has a job offer from an employer 1,000 miles away. The wage offer is $250 per year more than she makes on her current job. Does she move to the new job? (d) Problems 259 7.4 Suppose Norma will live and work forever and the interest rate i is 10 percent. What does it take to get Norma to migrate? Set NPV to zero in equation (7.5) to solve for the wage gain w that leaves Norma indifferent to moving. (a) (b) Assume that the moving cost c (in dollars) increases linearly with distance d (in miles). In particular, let c 1000 + d, and use this equation to express Norma's reservation wage gain as a function of distance d (c) For a move of 400 miles, Norma requires a wage gain of $ per year Norma has a job offer from an employer 1,000 miles away. The wage offer is $250 per year more than she makes on her current job. Does she move to the new job? (d)