Jan's Utility Function Is C - H², Where C Is

question 7

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.

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Definitions:

Exacerbates Stress

To make stress or tense situations worse or more severe through additional pressure or conflict.

Personal Problems

Issues or challenges that affect an individual's personal life, which may range from health, relationships, to financial troubles.

Work-Related Problems

Issues or difficulties encountered in the professional environment that affect performance, relationships, or job satisfaction.

Critical Thinking

The ability to engage in reflective and independent thinking, allowing an individual to analyze and evaluate an issue or situation to form a judgment.