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You earn 100$ per day

Supposed that you have to rent a robot to help you with your daily task:

The value robot provides to you is $12 per hour

The cost to rent a robot is 0.5* (hour rented)²


Assuming that your country is communist, the surplus shall be shared evenly.

Calculate the Gini coefficient for a world with just you and the robot. Is there perfect equality in this society? Why or why not?

User Dimcookies
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1 Answer

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Final answer:

The Gini coefficient for a world with just you and the robot is 1.

There is not perfect equality in this society because one entity (you) earns income while the other entity (the robot) provides a service without earning income, resulting in inequality.

Step-by-step explanation:

First, let's calculate the surplus you gain from renting the robot for a given number of hours.

The surplus is calculated as the value the robot provides minus the cost to rent it.

Given:

  • Value provided by the robot = $12 per hour
  • Cost to rent = 0.5 * (hour rented)²

If you rent the robot for 'n' hours, your surplus would be:

Surplus = Value provided by the robot - Cost to rent

Surplus = $12 * n - 0.5 * n²

Now, let's consider the earnings and surplus for different scenarios:

If you earn $100 per day (24 hours):

Surplus for 24 hours = $12 * 24 - 0.5 * 24²

Surplus for 24 hours = $288 - 288

Surplus for 24 hours = $0

In this scenario, your surplus is zero, meaning you're spending exactly what the robot provides in value.

Regarding the Gini coefficient and perfect equality, the Gini coefficient measures inequality within a society. In this specific scenario with just you and the robot, the surplus is being shared evenly due to the communist nature of the society.

As the surplus is zero, both you and the robot have the same amount of wealth, resulting in perfect equality (Gini coefficient of 0) within this small society.

User Oniropolo
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