4) Based on the numbers, calculate how many workers should be employed by the firm inperfect competition. Price= $5 for the product and wage = $50 per day.# of workersOutputMPLMRP1332653904100106* If the business decided to cut the employees pay to $30 a day, how many employeeswould they be able to use? At what wage would the business not be able to afford anyworkers? Explain.

4) The table below shows the MPl and MRP where MRP is given as MPl*price Number of workers output…

4) Based on the numbers, calculate how many workers should be employed by the firm in perfect competition. Price= $5 for the product and wage = $50 per day. # of workers Output MPL MRP 1 33 2 65 3 90 4 100 5 106 * If the business decided to cut the employees pay to $30 a day, how many employees would they be able to use? At what wage would the business not be able to afford any workers? Explain.

4) Based on the numbers, calculate how many workers should be employed by the firm in perfect competition. Price= $5 for the product and wage = $50 per day. # of workers Output MPL MRP 1 33 2 65 3 90 4 100 5 106 * If the business decided to cut the employees pay to $30 a day, how many employees would they be able to use? At what wage would the business not be able to afford any workers? Explain.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter14: Labor Markets And Income

Section: Chapter Questions

Problem 1SCQ: Table 14.10 shows levels of employment (Labor), the marginal product at each of those levels, and...

See similar textbooks

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?
Stone Inc. owns a clothing factory and hires workers in a competitive labor market to stitch cut denim fabric into jeans. The fabric required to make each pair of jeans costs $5. The company’s weekly output of finished jeans varies with the number of workers hired, as shown in the following table: Number of workers Jeans (pairs per week) 0 0 1 25 2 45 3 60 4 72 5 80 6 85 a. If the jeans sell for $35 a pair and the competitive market wage is $250 per week, how many workers should Stone hire? _____ workers How many pairs of jeans will the company produce each week? ____ pairs of jeans b. Suppose the Clothing Workers Union now sets a weekly minimum acceptable wage of $230 per week. All the workers Stone hires belong to the union. How does the minimum wage affect Stone’s decision about how many workers to hire? Stone’s decision (Will/will not) be affected by the minimum wage. c. If the minimum wage set by the union had been $400 per week, how would the minimum…
7. Leadbelly Co. sells pencils in a perfectly com petitive product market and hires workers in a perfectly competitive labor market. Assume that the market wage rate for workers is $150 per day a What rule should Leadbelly follow to hire the profit-maximizing amount of labor?
The table shows levels of employment (Labor), the marginal product of each of those levels, and a monopoly's marginal revenue. What is the monopoly's 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 firm's profit maximizing level of employment?
D9) Suppose that the demand for rough laborers is LD = 100 – 10W, where W = the wage in dollars per hour and L = the number of workers. If immigration increases the number of rough laborers hired from 50 to 60, by how much will the short-run profits of employers in this market change?
Your student group is setting up an internship fair. You invite companies looking for interns and students looking for internships and offer them a place to connect. The UofT wants to encourage this event and offers a per-internship of $5000. Whom do you recommend they give the $5000 to?--the student who gets the internship, the company that hires the student or split the money between them equally? What would be the effect of a $5000 subsidy on the number of internships? Why?
Table 15.6 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. a. What would the equilibrium wage and quantity be in this market if no union existed? b. 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?
1. Assume the quantity of envelopes licked per hour by Sticky Gums, Inc., is where L is the number of laborers hired per hour by the firm. Assume further that the envelope licking business is perfectly competitive with a market price of 1 cent per envelope. A. How much labor would be hired at a competitive wage of $10? What about $5? $2? Use these results to sketch a demand curve for labor. B. Assume that Sticky Gums hires its labor at an hourly wage of $10 what quantity of envelopes will be licked when the price of a licked envelope is 2 cents? What about 5 cents? 10 cents? Use your results to sketch a supply curve for licked envelopes.
Table 14.12 shows the quantity demanded and supplied in the labor market for driving city buses in the town ofUnionville, where all the bus drivers belong to a union. a. What would the equilibrium wage and quantity be in this market if no union existed?b. Assume that the union has enough negotiating power to raise the wage to $4 per hour higher than it wouldotherwise be. Is there now excess demand or excess supply of labor?
1. Suppose a family in Ghana is dependent on the wages a child makes harvesting cocoa beans. Is it fair to force the child to stop working? What would this mean to the family?
Ghana and Cote d'Ivoire are the world’s leading exporters of cocoa, which are grownand harvested by a large labour force that includes many children. Assume Ghana andCote d'Ivoire now outlaws the use of child labour on cocoa farms and the law is properlyenforced. Using economic theory and with the aid of diagrams, analyze what wouldhappen to employment and wages in the cocoa farming industry. Use supply anddemand curves in your analysis.
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?