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:

Aptitude

A natural ability to excel in a certain activity or field, often assessed through tests for educational and occupational placement.

Assessment

The set of procedures for gathering information about an individual’s psychological state, sometimes leading to a diagnosis.

Sternberg

Robert Sternberg, a psychologist known for his work on intelligence, creativity, wisdom, thinking styles, and love.

Intelligence

refers to the ability to learn from experience, adapt to new situations, understand and handle abstract concepts, and use knowledge to manipulate one's environment.