280 ‚Marginal Factor Cost Supply 154 124 112 91 70 Marginal Revenue Product 28 140 210 280320 420 520560 640 700 840 Quantity of Builders (f) If the wage rate is $124, state whether there will be a shortage or a surplus of builders and calculate its size. Show your work. (g) Identify the profit-maximizing number of builders that Cornel's Construction will hire. Explain using the labeling on the graph. (h) Identify the profit-maximizing wage rate that Cornel's Construction will pay its builders. Explain using the labeling on the graph. Wage Rate ($)

280 ‚Marginal Factor Cost Supply 154 124 112 91 70 Marginal Revenue Product 28 140 210 280320 420 520560 640 700 840 Quantity of Builders (f) If the wage rate is $124, state whether there will be a shortage or a surplus of builders and calculate its size. Show your work. (g) Identify the profit-maximizing number of builders that Cornel's Construction will hire. Explain using the labeling on the graph. (h) Identify the profit-maximizing wage rate that Cornel's Construction will pay its builders. Explain using the labeling on the graph. Wage Rate ($)

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter19: Earnings And Discrimination

Section: Chapter Questions

Problem 8PA

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Similar questions

Table 14.11 shows levels of employment (Labor), the marginal product at each of those levels, and a monopolys marginal revenue. What is the monopolys marginal revenue product at each level of employment? If the monopoly operates in a perfectly competitive labor market where the going market wage is 20, what is the films profit maximizing level of employment?
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.
Name some factors that can cause- a shift in the supply curve in labor markets.
Table 14.10 shows levels of employment (Labor), the marginal product at each of those levels, and the price at which the film can sell output in the perfectly competitive market where it operates. What is the value of the marginal product at each level of labor? If the firm operates in a perfectly competitive labor market where the going market wage is 12, what is the films profit maximizing level of employment?
Table 14.12 shows the quantity demanded and supplied in the labor market for driving city buses in the town of Unionville, where all the bus drivers belong to a union. What would the equilibrium wage and quantity be in this market if no union existed? Assume that the union has enough negotiating power to raise the wage to 4 per hour higher than it would otherwise be. Is there now excess demand or excess supply of labor?
What is die price commonly called in the labor market?