3 ms·
Yes, it has been about 13 years since I took econ. Since children are integers and are in daycare in quantities between 1 and 30ish per employee it's possible
by gnarbarian 12y ago
Yes, it has been about 13 years since I took econ. Since children are integers and are in daycare in quantities between 1 and 30ish per employee it's possible to increase the price to the point where it either covers the cost of the employee's OT or the quantity of demand is zero.
- dllthomas 12y agoCertainly the case. I think you're missing the point of the example, though. It's not "OMG there is no solution for this daycare" - there is, as you say, an obvious economic solution. It's that it is interesting (and relevant) that the different kinds of incentive don't stack, which is contrary to the naive assumption. Therefore, if the proposed mechanism cannot come up with sufficient money, it might actually make the situation worse - this may not be a "every little bit helps" situation.