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
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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?
0
1
2
3
4
5
c. If the price per case rises so that each one sells for $15,
will Carolyn hire more workers under union conditions?
Number of
Workers
Cases
0
200
360
480
560
600
per week
Transcribed Image Text: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? 0 1 2 3 4 5 c. If the price per case rises so that each one sells for $15, will Carolyn hire more workers under union conditions? Number of Workers Cases 0 200 360 480 560 600 per week
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