Jane is a busy woman. She left her former job to start her own consulting company. She assesses that demand for her services would increase if she lowered her hourly price P: demand for her services is about 200 - P per week. She has to pay $10 in liability insurance for every hour she works for herself. She also has a part-time job at her former employer's for $80 an hour, for as much time as she can spare. She is only physically able to work for 70 hours a week. It will probably help to draw a decision tree to think about her marginal decision.

1. How many hours does Jane decide to spend working for herself each week?

2. If Jane could only physically work 50 hours a week, how many hours per week would she decide to spend working for herself?