Question

Please Answers Both Question. i required answer in 2 hours . please help me

1. Draw one (1) graph to show the head of household’s own child’s net benefit from schooling, when the child’s demand for schooling is P=150-5Q_O7 and the marginal cost of schooling is 50.
2. Draw one (1) graph to show the head of household’s own child’s net benefit from schooling, when the child’s demand for schooling is P=150-5Q_U8 and the marginal cost of schooling is 50.

Answer 1

Please find below the graph and benefit from schooling as asked

Answer 2

Unfortunately, as an AI language model, I'm not able to create and attach visual graphs. However, I can explain how to draw the graphs based on the information provided.

To draw the graphs, you would need to plot the demand curve and the marginal cost curve on the same graph.

For the first scenario, where the child's demand for schooling is P=150-5QO7, the demand curve would have a negative slope of 5, intercepting the y-axis at 150. To plot the marginal cost curve, you would draw a horizontal line at 50.

To calculate the net benefit from schooling, you would subtract the marginal cost of schooling from the demand curve at each quantity of schooling. The point where the net benefit is maximized would be the optimal quantity of schooling for the child.

For the second scenario, where the child's demand for schooling is P=150-5QU8, you would follow the same process, except the demand curve would have a different intercept on the y-axis.

I hope this helps!