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

question 6

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:

Omni-Channel Retail

A multi-channel approach to sales that aims to provide the customer with a seamless shopping experience, whether they are shopping online, by phone, or in a physical store.

Shopping Experience

Refers to the overall perception and satisfaction of customers when purchasing products or services, influenced by factors like customer service, store layout, and product availability.

Retail Storage

The space used to store merchandise in retail operations before it is sold to customers.

Inventory Cost

The total cost associated with holding and storing unsold goods, including warehousing, insurance, depreciation, and opportunity costs.