Problem g [20 points] Assume that Sara has 5300 per month to divide between playing golf and playing paint ball . Assume Golf costs $40 and paintball costs 8% Suppose Sara plays golf eight times per month and plays paintball six times per month . a. Draw Sara's budget constraint b. Assume Sara has new expenses and can spend $320 only this month. Draw the new budget constraint c. As a result of a decrease in income Sara decides to play 11 rounds of golf and two games of paintball .what kind of a good is paintball? what kind ofa good is golf? d. Assume Sara has 5400, the price of paintball is still 5% but the price of Golf doubles , draw the new budget constraint Problem g [20 points) The following table represents data for a salon. Draw a graph showing total product , marginal product of labor and average product of labor Identify where increasing returns {diminishing returns and negative returns set in on the tota product curve Labor Total Product M ' Average Units (Haircuts um: Product (Employm) Per Day) of Labor of Labor 0 I} 1 7 3' 1m 2 l7 [0 8.50 3 Jul 14 10.33 4 4-4 13 11.94]I 5 55 l i I 1.00 6 64 9 ms? 7 69 s 9.86 8 69 :1 3,53 9 65 4 7.22 10 59 -6 5.90 Problem 3 : (20 points) Michelle keeps fit by either doing yoga or Thai boxing . she has a budget of $72 per month . One yoga session costs Michelle $6, One boxing session costs Michelle $6. Use the graphs below to determine how many yoga sessions and Thai boxing sessions should Michelle join to maximize utility . Explain your answer Marginal utility of yoga 28 24 20 16 12 MU 7 Yoga (sessions per month Marginal utility of 48 Thai boxing 32 24 16 MU Thai boxing (sessions per month)Problem El: 20 points] Suppose that widgets can be produced using two different production tech nigues . A and L The following table provides the total input requirements for each of ve different output levels. a. Assuming that the price of labor PL is $2, and the price of capital Pkis 53. Calculate the total cost of production for each ofthe five levels of output using the optimal {least cost} technologv at each level b. Graph total cost of production as a function of output [Assuming optimal technology is used] Hint : cost on the vaxis , quantity of output on the xaxis Problem ; [20 points] Anne decided to start a new business. To get into business she needs to invest in a shop location that costs $100,000 [not a direct cost}: Suppose she will sell 3000 units annuallyr for 520 each . Each unit costs $5 to produce. Finally she needs two staff member with an annual salarv of $14,000 each. Suppose Anne could have gotten an interest rate of 965 had she invested her $100,000 in a corporate bond. Calculate economic prots {show your work in detail}