Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Graph of TB & TC from Hours Working : The graph below measures the benefits and costs from working, from the perspective of a worker.

Graph of TB & TC from Hours Working: The graph below measures the benefits and costs from working, from the perspective of a worker. The variable Q stands for the number of hours the worker works, such that the horizontal axis measures the hours of work per week. On the assumption that they can choose their hours, the worker estimates a total benefit ( TB) from working according to the equation, TB = . (The value "1.335" might be interpreted as the hourly wage paid to the worker.) The worker estimates their total cost from working with the equation, TC = . (The TC of each Q might be interpreted as including the displeasure of effort and exertion from working Q hours.) It can be assumed that TC > TB for all hours beyond point B (32.3).

Reference: TB & TC of Working

For the question below, use the following table in conjunction with the Figure: Graph of TB & TC of Hours Working.

Point Q TB TC NB MC
I 8.075 10.78
C 16.15 14.520 7.041 1.335
F 24.23
B 32.3 43.120 2.207

Which of the points corresponds to the amount of hours worked where the NB is zero?

A. I
B. B
C. C
D. F
E. None of the above

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Modern Principles Microeconomics

Authors: Tyler Cowen, Alex Tabarrok

4th Edition

1319098762, 978-1319098766

More Books

Students also viewed these Economics questions

Question

9.8. Discuss how an S corporation works

Answered: 1 week ago

Question

What is management growth? What are its factors

Answered: 1 week ago