Question
Question: Mary and Jason are a new couple trying to understand their family production plans. Suppose they conduct two types of production: household production (HP)
Question: Mary and Jason are a new couple trying to understand their family production plans. Suppose they conduct two types of production: household production (HP) and market production (MP). If Mary carries out household production, her production value is equivalent to $20 each hour. If she does market production, she gets paid $15 each hour. Jason's production value is $12 per hour if he does household production. If he does market production, he gets paid $25 per hour. Assume Mary and Jason each work 8 hours on a typical workday.
g) Suppose despite their specialization, Mary prefers household production and Jason prefers market work. Construct a proper diagram to describe Mary and Jason's general work preferences and explain why. (4 Marks)
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