6. Mickey and Minnie live in Anaheim, Mickey's net present value of lifetime camings in Anaheim is $500,000, while Minnie's is S150,000, The cost of moving to Orlando is $15,000 per person. In Orlando, Mickey's net present value of lifetime earnings would be $550,000, while Minnie's would be $125,000. a) If Mickey and Minnie choose where to live based on maximizing their joint income, will they stay in Anaheim or move to Orlando? b) Which of the following is Mickey (circle). Tied-mover Tied-stayer Neither c) Which of the following is Minnie (circle): Tied-mover Tied-stayer Neither d) What is the maximum moving cost they would jointly be willing to pay to move to Orlando, if they decide to move?

6. Mickey and Minnie live in Anaheim, Mickey's net present value of lifetime camings in Anaheim is $500,000, while Minnie's is S150,000, The cost of moving to Orlando is $15,000 per person. In Orlando, Mickey's net present value of lifetime earnings would be $550,000, while Minnie's would be $125,000. a) If Mickey and Minnie choose where to live based on maximizing their joint income, will they stay in Anaheim or move to Orlando? b) Which of the following is Mickey (circle). Tied-mover Tied-stayer Neither c) Which of the following is Minnie (circle): Tied-mover Tied-stayer Neither d) What is the maximum moving cost they would jointly be willing to pay to move to Orlando, if they decide to move?

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter16: Labor Markets

Section: Chapter Questions

Problem 16.3P

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