The equilibrium wage and quantity are W*=10 and Q*=40. a. Consider a minimum wage of W=$8. What will be the new equilibrium wage and quantity? a. W*= $8 b. Q*= 38 b. Suppose the Democrats implement a new federal minimum wage of W=$12. What will be the new equilibrium wage and quantity? a. W*= $12 b. Q*= 36 ABC c. Quantity represents employment, then what has happened to unemployment (increased/decreased/same)? d. What term best describes the effect of this policy on social surplus? What has happened to consumer surplus (remember this is for the firms/employers in this question)? f. What has happened to producer surplus (this is the workers in this question)? е. i. ii. It has gone up. It has gone down. It has stayed the same. iv. ii. We don't have enough information to know.

The equilibrium wage and quantity are W=10 and Q=40. a. Consider a minimum wage of W=$8. What will be the new equilibrium wage and quantity? a. W= $8 b. Q= 38 b. Suppose the Democrats implement a new federal minimum wage of W=$12. What will be the new equilibrium wage and quantity? a. W= $12 b. Q= 36 ABC c. Quantity represents employment, then what has happened to unemployment (increased/decreased/same)? d. What term best describes the effect of this policy on social surplus? What has happened to consumer surplus (remember this is for the firms/employers in this question)? f. What has happened to producer surplus (this is the workers in this question)? е. i. ii. It has gone up. It has gone down. It has stayed the same. iv. ii. We don't have enough information to know.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter16: Labor Markets

Section: Chapter Questions

Problem 16.7P

See similar textbooks

Similar questions

Consider the market for low-skilled labor where firms demand labor and workers supply labor. The price of low-skilled labor is the hourly wage paid to the workers in dollars, W. The demand and supply curves are: D(W) = 60 – 2W and S (W) = 30 + W (These give the number of hours demanded/supplied each week in millions, i.e., if S(W)=30 this means there are 30 million hours supplied at that hourly wage. But I will assume your answers are in millions so you don't need to keep writing millions.) The equilibrium wage and quantity are W*=10 and Q*=40. a. Consider a minimum wage of W=$8. What will be the new equilibrium wage and quantity? a. W*= b. Q*= b. Suppose the Democrats implement a new federal minimum wage of W=$12. What will be the new equilibrium wage and quantity? ( a. W*= b. Q*= c. Draw a supply and demand graph with the minimum wage to illustrate your answer to (b).
A manager hires a labor and rents capital equipment in a very competitive market. Currently the wage rate is Gh₵ 2 per hour and capital is rented at Gh₵ 5per hour, the unit price of the product is Gh₵ 0.25 and total cost is1000. Suppose the firm’s production is as follows: Q =14K⁰L⁰+10 Required What is the amount of labor and capital the firm should employ in order to maximize profit. What is the maximum profit.
In a particular industry, labor supply is ES = 10 + w and labor demand is ED = 40 -4w,where E is the level of employment and w is the hourly wage.(a) What is the equilibrium wage.
Calculate the Marginal Product (MP) at each input level. If the price of printer is $100 each, calculate the Value of the Marginal of labor (VMPL). If the wage rate (per week) is $1800 , how many workers will be employed? If the firm decides to hire 14 workers, what is the maximum wage the firm would be willing to pay?
Iln Smalltown, Pennsylvania the demand function for men's haircuts is given by Qd = 500 – 30p + 0.08Y, where Qd is quantity demanded per month, p the price of a haircut and Y the average monthly income in the town. The supply function for men's haircuts is Qs = 100 + 20p – 20w, where Qs is the quantity supplied and w the average hourly wage of barbers. Assume that Y increases to $6,500 and w increases to $12. Use Excel recalculate Qd, Qs, and Excess Demand and answer the following questions. when P=$10. 2. Find Qs = when P=$20. 3. Find Excess Demand = when P=$10. 4. The equilibrium price (or rounding to the nearest whole number) is $ _. units. 1. Find Qd and the equilibrium quantity is
A firm faces a perfectly elastic demand for its output at a price of $6 per unit of output. The firm, however, faces an upward-sloped labor supply curve ofE = 20w - 120where E is the number of workers hired each hour and w is the hourly wage rate. Thus, the firm faces an upward-sloped marginal cost of labor curve ofMCE = 6 + 0.1EEach hour of labor produces five units of output. How many workers should the firm hire each hour to maximize profits? What wage will the firm pay? What are the firm’s hourly profits?
Give typing answer with explanation and conclusion Workers in a certain occupation will soon require a government issued licence to legally practice in that occupation. To get the new licence workers will need to study and pass an ex*m and then pay for a licence. Employers who provide this service will need to close their shop unless they employ these licensed employees to serve the public. Based on this information: a) Briefly discuss how in the near term this new development will change the Supply of labour in this occupation. b) Briefly discuss how in the near term this new development will change the Demand for labour in this occupation. c) Briefly discuss how this development will affect the equilibrium wage rate and the number of workers employed in the occupation.
Suppose a firm produces the following products. Calculate and fill in the missing values in the table below. (Round your answers to the nearest whole number.) Marginal product of Value of marginal Product Number of workers Price per unit labor product of labor A 10 170 $1,200 20 130 $12 25 130 $14 30 90 $1,200 In the above case, when the daily wage of the workers is $1400, then the firm will produce the products only after reducing the number of workers employed. The firm observes with the help of the that as additional labor is employed, the quantity produced for product A increases.
A decrease in the wage rate will cause a firm’s marginal cost curve to shift down. True or False and explain why. Include graphs when needed.
The diagram below shows the supply and demand curves for some product somewhere. price per unit (P) 260 240 220 200 180 160 140 120 100 80 60 40 20 S₁ D₁ 0 0 50 100 150 200 250 300 350 400 450 500 550 600 number of units (Q) If the wages of workers producing this product were to decrease leading to a change of 150, then the new equilibrium price and quantity traded would be $ and units. Hint: wages is a cost to the firm.
Suppose that Zamboni Enterprises is the only company that sells zambonis (ice resurfacing machines). To produce the machines, the company hires assembly workers. Since these workers can work in many different companies, Zamboni Enterprises must pay them the market wage, which is equal to $6. The number of zambonis that the company produces, which is denoted by y, is proportional to the number of assembly workers that it hires, which are denoted by N; in particular, the production function is given by y=0.76N. The economywide demand for zambonis is given by the following demand function: y=2191-219p, where y is the number of zambonis that consumers are willing to purchase at price p. If the market for zambonis were competitive, how many zambonis would be produced? If the market for zambonis were competitive, how many assembly workers would be hired? If the market for zambonis were competitive, at what price would zambonis be sold?
Suppose that Zamboni Enterprises is the only company that sells zambonis (ice resurfacing machines). To produce the machines, the company hires assembly workers. Since these workers can work in many different companies, Zamboni Enterprises must pay them the market wage, which is equal to $6. The number of zambonis that the company produces, which is denoted by y, is proportional to the number of assembly workers that it hires, which are denoted by N; in particular, the production function is given by y=0.76N. The economywide demand for zambonis is given by the following demand function: y=2191-219p, where y is the number of zambonis that consumers are willing to purchase at price p. Given this market structure, how many assembly workers will Zamboni Enterprises choose to hire? How many zambonis will Zamboni Enterprises produce and sell? What will be the price of a zamboni? If the market for zambonis were competitive, how many zambonis would be produced? If the market for…