Marilyn Is a Journalist

question 12

Essay

Marilyn is a journalist. She is considering two possible jobs. One job is as an editor for a magazine. The other job is writing freelance articles and selling them to whoever will buy them. If she works for the magazine, she must spend 10 hours a day at work and commuting. She will be paid $130 a day net of commuting costs and taxes if she takes this job. If she writes freelance articles, she can work at home and as many hours a day as she pleases. She estimates that she would earn $10 an hour after taxes if she does this. Her utility function is U = (R³)C, where R is the number of hours a day she spends not working or commuting and C is her earnings.
a. If Marilyn chooses to freelance, how many hours will she work?
b. Calculate her utility in each job and identify which job she will choose.

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Definitions:

Child Protective Services

An agency designed to respond to reports of child abuse or neglect, ensuring the safety and wellbeing of children.

Child Abuse

Physical, sexual, emotional mistreatment, or neglect of a child by a parent, caregiver, or another person in a position of trust.

State Charge

A state charge refers to a financial or legal obligation enforced by a government entity, such as taxes, fines, or fees for services.

Sexual Abuse

Any unwanted sexual activity, with perpetrators using force, making threats, or taking advantage of victims not able to give consent.