May's utility function is 
, where C is dollars spent on goods other than housecleaning, D is the number of hours per day that somebody spends cleaning her house, H is the number of hours per day May spends cleaning her house, and J is the number of hours per day May spends working at her job. All May's income comes from her job. She can work as many hours a day as she wishes at a wage of $7 an hour.
a. If she cannot hire anyone to do her housecleaning, how many hours will she spend on the job and how many hours will she spend housecleaning?
b. If she can hire a housecleaner at $5 an hour, how many hours will she work on her job, how many hours of housecleaning will she hire, and how many hours will she clean house?
Definitions:
Single-index Model
A model of stock returns that decomposes influences on returns into a systematic factor, as measured by the return on a broad market index, and firm-specific factors.
Systematic Component
The part of an investment’s return or risk that is attributable to broad market factors affecting all investments to some degree.
Q1: If the nominal interest rate is 3%
Q18: On the planet Hyperion, every consumer who
Q24: If the value of the marginal product
Q27: Nick insists on consuming 3 times as
Q37: If the short-run marginal costs of producing
Q42: Harvey's net demands for goods 1 and
Q45: Twenty years ago, Dmitri consumed bread which
Q58: If there are only two goods, an
Q61: If there are increasing returns to scale,
Q75: It is impossible for a person to