Marilyn Is a Journalist

question 7

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:

C-chart

A control chart used for monitoring the number of defects per unit in manufacturing or production processes.

Control Limits

Statistical boundaries set within control charts in process control to identify whether a process is in a state of control.

Average Diameters

The mean value of diameters measured across different points or objects, providing a single representative dimension.

Natural Variations

Variations that occur in processes due to inherent differences in materials, equipment, and environmental conditions, and are expected within certain limits.