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Can you please provide detailed explanation of the answer? 4. IndividualfJoint Migration: Assume that each person has three periods to live- At the beginning of

Can you please provide detailed explanation of the answer?

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4. IndividualfJoint Migration: Assume that each person has three periods to live- At the beginning of the rst period, they need to decide whether to stay at their home location (H) or move to a distant location (D). Table below shows Jack and Jill's per-period earning at each location. The cost of moving is 100 per person. The interest rate is 0.25. H D a. Suppose that the couple had to stay together, where would they choose to be? What is their total net lifetime earnings (total earnings minus total costs)? Identify the tied- mover or tied-stayer? b. Suppose they could stay apart, but Jack has to travel to visit Jill once per period. The cost of such visit is 5 per trip. Where would each of them choose to be? What is their total net lifetime earnings (earnings minus costs)

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