Now a ship arrives off Ishmael’s island.
(You would think the ship captain, Ahab, would take Ishmael
onboard to reunite him with his family, but that’s not going to happen.
Captain Ahab offers
Ishmael the following deal:
Ahab offers to hire Ishmael to work on the ship (which for some reason never leaves the island)
at a wage $w.
Ishmael can spend his earnings on C, which Ahab will sell for price $P. (In case
you’re wondering, Ahab’s ship has the ability to produce C with Ishmael’s labor.)
Using appropriate tools, show whether Ishmael will work on the ship at the wage offered by Ahab, and if
so how much labor he will offer to Ahab.