Give four explanations for why firms might find ii profitable lo pay wages above the level that balances quantity of labor supplied and quantity oflabor demanded.
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Give four explanations for why firms might find ii profitable lo pay wages
above the level that balances quantity of labor supplied and quantity of
labor demanded.
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- What is the formula for the wage elasticity of labor supply?Name some factors that can cause a shift in the demand curve in labor markets.A firms marginal cost curve above the average variable cost curve is equal to the films individual supply curve. This means that every time a firm receives a price from the market it will be willing to supply the amount of output where the price equals marginal cost. What happens to the films individual supply curve if marginal costs increase?
- What is die price commonly called in the labor market?suppose Fred produces 500 litres of milk every day with 10 workers. the price of milk is $12 per litre, and each worker is paid $550 daily. if th margin product of the last worker employed is 40 litres of milk, explain whether Fred is maximizing his profit. If not, can Fred incrase his profit by employing more or fewer workers? If Fred buys more dairy cattles, how will it affect his demand for labor? Explain with a diagram.2:32 PM O O ® ……. ll ll 6 69 ME ASSIGNMENT - Read-only Sign in to edit and save changes to this file. 1. Suppose that a demand function for computer is Od = 30- 15p, and a supply function for computer is C = 40+25p. Calculate the price and the quantity at equilbrium 2. Name the return to scale in each column Units of Canital Units of Labour Tatal Outnut % Change in Inputs % Change in Output Returns to Output Scale e 20 150 3000 7500 12000 100 50 33 25 40 300 150 60 450 60 B0 800 16000 33 100 750 18000 13 3. S.NO TOTAL MARGINAL | RETURNS TO PRODUCT PRODUCT SCALE 18 8 2 3 28 10 10 38 48 56 10 15 6 62 6 4 Complete the following table Marginal Average Average Average cost MC Output Fixed Variable Total cost cost AFC variabie cost AC cost cost F cost AVC 84 1 84 10 2 84 21 3 84 28 4 84 36 5 84 54 6 84 81 7 84 108 84 136 84 178 10 84 226 ...
- Consider a manufacturing firm in a labor market that isperfectly competitive. There are two kinds of workers: productiveworkers whose marginal revenue product is $48,000 per year, andlazy workers whose marginal revenue product is $40,000 per year. Itis difficult for the firm to differentiate between productive andlazy workers. A local college offers a new yearlong astronomy course. Althoughthe cost of tuition is the same for both types of workers, thepsychic cost of having to work hard and get a passing grade islower for productive workers because they are able to learn morequickly than lazy workers. Therefore, the cost of taking the class(including the cost of tuition as well as the psychic cost) is$5,000 per year for a productive worker and $10,000 per year for alazy worker. Because astronomy has little relevance tomanufacturing, taking the class does not increase or decrease aworker's productivity. The firm uses the class as a way to differentiate betweenproductive and lazy…To maximize profit, a firm OA. uses the quantity of land at which the rental rate equals the value of marginal product of land OB. uses the quantity of capital at which the suppliers' expected profit equals the value of marginal product of capital O c. uses the quantity of capital at which the marginal revenue equals the value of marginal product of capital O D. balances the rental rate of capital against the wage rate of labor 7 5 > 6 M & 7 O * 8 O Next C NS Co ho Miha NS. ythor ers [T Camp.Amanda owns a small bakery in the perfectly competitive pastry industry. She is considering whether to hire an additional pastry chef. The wage rate for pastry chefs is $1,000 per week; the marginal product of an additional pastry chef is 1,000 pastries per week; and the unit price of pastries is $1.25. Amanda should: O hire the additional pastry chef. not hire the additional pastry chef. raise the price of the pastries. O Not enough information is given to answer the question.
- Gopher Excavators produces shovels in a small factory and sells the shovels in a competitive market. The following table shows the company's production function: Labor Output (Shovels) (Number of workers) 0 0 1 100 2 195 3 275 4 340 5 380 Use the blue points (circle symbol) to plot the production function for Gopher Excavators on the following graph. (?) 400 O -O- 360 Production Function 320 280 240 200 160 120 80 40 0 O 0 2 2 5 LABOR (Number of workers) Calculate the marginal product of labor (MPL) of each worker, and then plot the MPL curve on the following graph using the blue points (circle symbol). Note: Remember to plot each point halfway between two integers. For example, when the number of workers increases from 0 to 1, the MPL of the first worker should be plotted with a horizontal coordinate of 0.5, the value halfway between 0 and 1. Line segments will automatically connect the points. ? 100 90 80 70 60 50 40 30 20 OUTPUT (Shovels) MPL (Shovels per worker) 10 0 0 O 1 1 2…What is the effect if the cost of labor increases? O Price increases, quantity increases O Price decreases, quantity decreases O Price decreases, quantity increases O Price increases, quantity decreasesdraw and fully label a supply and demand graph for new houses. suppose the cost of constructino worker wages goes up. Show how lines move and the change in price and quality for housing market
