Multiple Choice
Jan's utility function is C - H2, where C is consumption and H is hours worked per day.She can work in the city for 8 hours per day, earning $100 a day.Alternatively, she can rent a small farm from Mr.Porksniffer.If she rents the farm, she can work as many hours a day as she wishes.If she works H hours per day, she can sell her crops for a total of $20H per day, but she must pay Mr.Porksniffer an annual rent of $R.Mr.Porksniffer wants to charge the highest rent $R that he can and still be able to have Jan rent from him.What is the highest rent he can charge? A penny less than
A) $100 per day.
B) $64 per day.
C) $60 per day.
D) $50 per day.
E) $36 per day.
Correct Answer:

Verified
Correct Answer:
Verified
Q1: Suppose that low-productivity workers all have marginal
Q2: In a market where there is a
Q3: A certain city has two kinds of
Q4: Which of the following is the best
Q5: A firm hires two kinds of workers,
Q7: Suppose that in Enigma, Ohio, klutzes have
Q8: Suppose that low-productivity workers all have marginal
Q9: Suppose that low-productivity workers all have marginal
Q10: Ten workers work jointly on a project.All
Q11: A life insurance company must be concerned