Suppose You Are Able to Babysit at $10 Per Hour

question 166

Essay

Suppose you are able to babysit at $10 per hour. The only cost to you is the opportunity cost of your time. For the first 2 hours, the opportunity cost of your time is $7 per hour. But after 2 hours, the opportunity cost of your time rises to $13 because of other commitments. Draw the marginal cost to you of babysitting. Draw in the price you receive for babysitting. For how long will you babysit? Calculate your producer surplus.

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Definitions:

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Software designed to create visual aids and presentations to communicate ideas, data, and information effectively.

Intranet

A private network accessible only by an organization's staff, often serving as a secure platform for information sharing and communication.

Extranet

Secure network used for e-business and accessible through an organization’s website; available to external customers, suppliers, and other authorized users.

Botnet

A network of PCs that have been infected with one or more data-stealing viruses.