Ymir Larson farms near Niffleheim, Minnesota. He works 80 hours a week. He can e

Question

Ymir Larson farms near Niffleheim, Minnesota. He works 80 hours a week. He can either grow
rutabagas or raise pigs. Every hour that he spends growing rutabagas gives him $2 of income this
year. Every hour that he spends raising pigs this year will add $4 to his income next year. In fact,
next year’s weekly income will be 100 + 4H dollars where H is the number of hours he spends
raising pigs this year. Ymir’s utility function is U(c1, c2) = min{c1, c2}, where c1 and c2 are his
consumption expenditures this year and next year. Ymir doesn’t believe in banks and will neither
lend money nor borrow money.
a. Draw Ymir’s budget line for current and future consumption, labeling key points on it.
b. How many hours a week will he choose to spend raising pigs?
c. How much money will he spend per week on consumption in each year?

Explanation / Answer

Hi! Cramster Terms & Conditions were changed recently (I hope you have read them). Now, experts have to send the answers to askers' inbox after you rate them. That is because of people copying from older threads which have public answers. Hence we can only send the answer after you rate. So please give me a Lifesaver rating and I'll send the solution to your inbox or e-mail. You've got no other option to get the answer, because no one can give you the answer over here. Even you might be banned for rating a user that gave the answer directly on your question. You need not worry as I have the solution ready in my notebook. Hope you rate me :)

Related Questions

Navigate

• Browse (All)
• Browse Y
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.