1. Carolyn owns a soda factory and hires workers in a competitive labor market to bottle the soda. Her company's weekly output of bottled soda varies with the number of workers hired, as shown in the following table. a. If each case sells for $10 more than the cost of materials and wages are $1000 per week, how many workers will be hired? b. Suppose a bottlers union now sets weekly wages at $1,500 and all the workers belong to the union. How many workers will be hired instead? c. If the price per case rises so that each one sells for $15,
1. Carolyn owns a soda factory and hires workers in a competitive labor market to bottle the soda. Her company's weekly output of bottled soda varies with the number of workers hired, as shown in the following table. a. If each case sells for $10 more than the cost of materials and wages are $1000 per week, how many workers will be hired? b. Suppose a bottlers union now sets weekly wages at $1,500 and all the workers belong to the union. How many workers will be hired instead? c. If the price per case rises so that each one sells for $15,
Principles of Microeconomics
7th Edition
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter19: Earnings And Discrimination
Section: Chapter Questions
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