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Cecilia is having troubles understanding her economics classes, and so she hires a PhD students Dino as a tutor. After years of hearing professors talking about responding to incentives and solving profit-maximizing conditions numberless times, Dino became a cynic and nothing but money can make him work hard. By talking to other students who have hired Dino as a tutor, Cecilia has figured out that Dino is willing to accept any hourly pay w E [1, 4), and depending on the pay his effort in tutoring will be e = E(w) = -7+Sw- w. The effort e represents how much an hour of his tutoring is worth to Cecilia. In other terms, e is Cecilia's willingness to pay for one hour of (Dino's) tutoring. Accordingly, Cecilia's economic rent from one hour of tutoring is E(w)- w. Cecilia has 10 hours left for tutoring before the midterm test. What hourly (a) / pay w should she offer to Dino to maximize her benefit from the 10 hours of tutoring? (b) time she is not limited in time, and so she can choose how many hours of tutoring to ask Dino for. Her objective is simply to get most for "each dollar" spent on tutoring. What hourly pay will she offer to Dino then? After the midterm test, Cecilia starts preparing for the final test, and this

Cecilia is having troubles understanding her economics classes, and so she hires a PhD students Dino as a tutor. After years of hearing professors talking about responding to incentives and solving profit-maximizing conditions numberless times, Dino became a cynic and nothing but money can make him work hard. By talking to other students who have hired Dino as a tutor, Cecilia has figured out that Dino is willing to accept any hourly pay w E [1, 4), and depending on the pay his effort in tutoring will be e = E(w) = -7+Sw- w. The effort e represents how much an hour of his tutoring is worth to Cecilia. In other terms, e is Cecilia's willingness to pay for one hour of (Dino's) tutoring. Accordingly, Cecilia's economic rent from one hour of tutoring is E(w)- w. Cecilia has 10 hours left for tutoring before the midterm test. What hourly (a) / pay w should she offer to Dino to maximize her benefit from the 10 hours of tutoring? (b) time she is not limited in time, and so she can choose how many hours of tutoring to ask Dino for. Her objective is simply to get most for "each dollar" spent on tutoring. What hourly pay will she offer to Dino then? After the midterm test, Cecilia starts preparing for the final test, and this

Linear Algebra: A Modern Introduction
Linear Algebra: A Modern Introduction
4th Edition
ISBN:9781285463247
Author:David Poole
Publisher:David Poole
Chapter2: Systems Of Linear Equations
Section2.4: Applications
Problem 27EQ
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Ans part a,b please
Cecilia is having troubles understanding her economics classes, and so she hires a PhD students Dino as a tutor. After years of hearing professors talking about responding to incentives and solving profit-maximizing conditions numberless times, Dino became a cynic and nothing but money can make him work hard. By talking to other students who have hired Dino as a tutor, Cecilia has figured out that Dino is willing to accept any hourly pay w e [1, 4], and depending on the pay his effort in tutoring will be e = E(w) = -7+Sw – w?. The effort e represents how much an hour of his tutoring is worth to Cecilia. In other terms, e is Cecilia's willingness to pay for one hour of (Dino's) tutoring. Accordingly, Cecilia's economic rent from one hour of tutoring is E(u) – w. (a) i pay w should she offer to Dino to maximize her benefit from the 10 hours of tutoring? Cecilia has 10 hours left for tutoring before the midterm test. What hourly (b) time she is not limited in time, and so she can choose how many hours of tutoring to ask Dino for. Her objective is simply to get most for "each dollar" spent on tutoring. What hourly pay will she offer to Dino then? After the midterm test, Cecilia starts preparing for the final test, and this
Transcribed Image Text:Cecilia is having troubles understanding her economics classes, and so she hires a PhD students Dino as a tutor. After years of hearing professors talking about responding to incentives and solving profit-maximizing conditions numberless times, Dino became a cynic and nothing but money can make him work hard. By talking to other students who have hired Dino as a tutor, Cecilia has figured out that Dino is willing to accept any hourly pay w e [1, 4], and depending on the pay his effort in tutoring will be e = E(w) = -7+Sw – w?. The effort e represents how much an hour of his tutoring is worth to Cecilia. In other terms, e is Cecilia's willingness to pay for one hour of (Dino's) tutoring. Accordingly, Cecilia's economic rent from one hour of tutoring is E(u) – w. (a) i pay w should she offer to Dino to maximize her benefit from the 10 hours of tutoring? Cecilia has 10 hours left for tutoring before the midterm test. What hourly (b) time she is not limited in time, and so she can choose how many hours of tutoring to ask Dino for. Her objective is simply to get most for "each dollar" spent on tutoring. What hourly pay will she offer to Dino then? After the midterm test, Cecilia starts preparing for the final test, and this
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