The Roomba 570 is a robotic vacuum cleaner made and sold by iRobot. It can vacuum 4 rooms on a single battery charge and it costs $2 of electricity to charge the Roomba
Lynn is a house cleaner and can vacuum 4 rooms in 1 hour with a traditional vacuum. Suppose you want the 4 rooms in your house vacuumed once a week for one year. Ignoring the cost of any electricity Lynn uses, what is the maximum Lynn could charge per hour for you to choose her over the Roomba? A) $10.23 per hour
B) $20.45 per hour
C) $8.27 per hour
D) $16.54 per hour
B
You might also like to view...
Suppose you hold $50 to buy groceries weekly and then the price of groceries increases by 5 percent. To be able to buy the same amount of groceries, what must happen to your nominal money holdings?
A) They must increase by $5. B) They can decrease by $5. C) They must increase by $2.50. D) They must increase, but the amount of the increase depends on income.
When steady state capital per worker is above the golden-rule level, we know with certainty that an increase in the saving rate will
A) increase consumption in both the short run and the long run. B) decrease consumption in both the short run and the long run. C) decrease consumption in the short run, and increase it in the long run. D) increase consumption in the short run, and decrease it in the long run. E) none of the above