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Roberta is moving to be closer to her children. Roberta is a nurse and makes $45 per hour. She has ...

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Roberta is moving to be closer to her children. Roberta is a nurse and makes $45 per hour. She has ...

Roberta is moving to be closer to her children. Roberta is a nurse and makes $45 per hour. She has to decide whether to hire movers to pack up her belongings or pack it all up herself. The movers will charge $1,000 to supply packing materials and pack up all of Roberta's belongings. It would take 20 hours for her to pack up herself, and she would need to spend $300 on packing materials.

Refer to the scenario above. If Roberta found a 50% off coupon for the packing materials, how would that change her optimal choice?

▸ She would now save $50 by hiring the movers.

▸ She would now save $50 by packing herself.

▸ She would now save $700 by packing herself.

▸ She would now save $700 by hiring the movers.

Textbook

Macroeconomics

Edition: 3^rd

Authors: Acemoglu, Laibson, List

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