​Gibson's Bodywork does automotive collision work. An insurance agency has determined that the standard time to replace a fender is 0.25 hours​ (i. e., "standard ​output"equals 4 fenders per​ hour) and is willing to pay Gibson ​$40 per hour for labor​ (parts and supplies are billed​ separately). Gibson pays its workers ​$25 per hour. Suppose​ Gibson's workers take 5 hours to replace a fender. a. ​Gibson's labor hour efficiency is nothing​%. ​(Enter your response rounded to two decimal​ places.) Given​ Gibson's labor​ costs, the company ▼ will will not make money on the job. b. ​Gibson's labor hour efficiency has to be nothing​% for Gibson to break even on the job. ​(Enter your response rounded to two decimal​ places.)

3. saving two consumers, larry and jeff, have utility functions defined over the two periods of their lives: middle age (period zero) and retirement (period 1). they have the same income in period 0 of m dollars and they will not earn income in period 1. the interest rate they face is r. larry’s and jeff’s utility functions are as follow. = 0.5 + 0.5 and = 0.5 + 0.5 for each person is between zero and one and represents each consumer’s temporal discount econ 340: intermediate microeconomics. ben van kammen: purdue university. rate. a. write the budget constraint that applies to both jeff and larry in terms of consumption in each period and ), interest rate, and m. b. what is larry’s and what is jeff’s marginal rate of intertemporal substitution? c. what is the slope of the budget constraint? d. write each consumer’s condition for lifetime utility maximization. e. re-arrange the conditions from part (d) to solve for the ratio, . f. if > which consumer will save more of his middle age income? g. if > 1 1+ , in which period will larry consume more: = 0 or = 1?