114) Which of the following best describes the managerial labor market? a) The managerial labor market includes the candidate from market both external and internal to the firm b) The managerial labor market only includes the candidates external to the firm c) The managerial labor market only include the candidates internal to the firm' d) The managerial labor market only includes candidates from foreign market

114) Which of the following best describes the managerial labor market? a) The managerial labor market includes the candidate from market both external and internal to the firm b) The managerial labor market only includes the candidates external to the firm c) The managerial labor market only include the candidates internal to the firm' d) The managerial labor market only includes candidates from foreign market

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter11: Profit Maximization

Section: Chapter Questions

Problem 11.12P

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114) Which of the following best describes the managerial labor market? a) The managerial labor market includes the candidate from market both external and internal to the firm b) The managerial labor market only includes the candidates external to the firm c) The managerial labor market only include the candidates internal to the firm’ d) The managerial labor market only includes candidates from foreign market
According to the Wall Street Journal, Mitsubishi Motors recently announced a major restructuringplan in an attempt to reverse declining global sales. Suppose that as part of the restructuring planMitsubishi conducts an analysis of how labour and capital are used in its production process. Priorto restructuring Mitsubishi’s marginal rate of technical substitution is 0.15 ( in absolute value). Tohire workers. Suppose that Mitsubishi must pay the competitive hourly wage of US$ 15. In thestudy of production process and markets where capital is procured, suppose that Mitsubishidetermine that its marginal productivity of capital is 0.5 small cars per hour at its new targetedlevel of output and that capital is procured in a highly competitive market. The same studyindicates that the average selling price of Mitsubishi’s smallest car is US$ 9500. Determine therate at which Mitsubishi can rent capital and marginal productivity of labour at its new targetedlevel of output. To minimize costs…
Consider a manufacturing firm in a labor market that isperfectly competitive. There are two kinds of workers: productiveworkers whose marginal revenue product is $48,000 per year, andlazy workers whose marginal revenue product is $40,000 per year. Itis difficult for the firm to differentiate between productive andlazy workers. A local college offers a new yearlong astronomy course. Althoughthe cost of tuition is the same for both types of workers, thepsychic cost of having to work hard and get a passing grade islower for productive workers because they are able to learn morequickly than lazy workers. Therefore, the cost of taking the class(including the cost of tuition as well as the psychic cost) is$5,000 per year for a productive worker and $10,000 per year for alazy worker. Because astronomy has little relevance tomanufacturing, taking the class does not increase or decrease aworker's productivity. The firm uses the class as a way to differentiate betweenproductive and lazy…
Solving for the equilibrium wage and quantity is a multi-step procedure. First, you will need the marginal resource cost (MRC) curve. This curve gives the marginal cost of hiring an additional nurse (in cost per hour). Since attracting an additional nurse requires raising the wage rate for all nurses, this cost is above the wage rate required for that additional nurse. If the inverse supply curve is given as W = a + bQs, the marginal resource cost is: MRC = a + 2bQs Essentially, it has the same y-axis intercept as the inverse supply curve, but twice the slope. With a single buyer there isn’t a demand curve, but what we would think of the demand curve is the marginal value curve. In this case, it gives the marginal value product (in dollars per hour) of nurses. Hence, you can replace W in the inverse demand function with MVP. To find the quantity of nurses hired, set MRC = MVP and solve: Q. 6. With a monopsony, how many nurses are hired?
24. Which of the following statements is correct? a. Managerial decisions are affected primarily by microeconomic forces. b. By and large, managerial decisions are not affected by either microeconomic or macroeconomic forces. c. Managerial decisions are affected by both microeconomic and macroeconomic forces. d. Managerial decisions are affected primarily by macroeconomic forces.
The use of cannibus was legalized in canada in 2017. Lets assume that the cannibus in canada sector perfectly competitive. Assume labour is the only variable input and that an additional input of labour increases total output from 5 to 12 ounces of cannibus. If cannibus sells for 10$ per ounce in perfectly competitive matket, the MRP of this additional worker is A) 120$ B) 10$ C) 7$ D) can be possitive or negative E) 70$
Suppose that labor is the only input used by aperfectly competitive firm. The firm’s productionfunction is as follows:Days of Labor Units of Output0 days 0 units1 72 133 194 255 286 297 29a. Calculate the marginal product of each additionalworker.b. Each unit of output sells for $10. Calculate thevalue of the marginal product of each worker.c. Compute the demand schedule showing thenumber of workers hired for all wages from zeroto $100 a day.d. Graph the firm’s labor-demand curve.e. What happens to this demand curve if the price ofoutput rises from $10 to $12 per unit?
True or false The single most important element in managerial economics is the microeconomic theory of the firm.
Number ofWorkersEmployed Output(Units) MarginalProduct(Units) Value ofMarginalProduct ($)(Market Price=1$) Value ofMarginalProduct ($)(Market Price=2$) 0 0 1 8 2 22 3 36 4 56 5 60 6 72 7 82 8 89 Derive Marginal Product and Value of Marginal Product from the following table when market price for the product is 1$ and 2$ .
Q40 If one worker in southern Ontario worker can pick $30 worth of tomatoes two workers together can pick $70 worth of tomatoes, the Multiple Choice data given are insufficient to determine the marginal revenue product of either worker. data given suggests diminishing returns. marginal revenue product of the first worker is $40. marginal revenue product of each worker is $35. marginal revenue product of the second worker is $40.
Consider a firm that is perfectly competitive in the market for inputs and outputs. Thefirm hires two types of workers: low-skill (high school graduates and high school dropouts) andhigh-skill (undergraduate and postgraduate degree) workers. The firm compensates high-skilledworkers at the rate wH and low-skill workers at the rate wL. It produces the output subject to aCobb-Douglas production technologyF(L,H) = (AH)α(L)β,where H - is the amount of high-skill hours, L - the amount of low-skill hours, and A - thetechnology parameter that augments the productivity of the high-skill labour. 4. In the short run, the firm cannot increase the amount of high-skill labour . Derive the1short-run demand for low-skill labour.5. What is the substitution effect of the wage increase in the short-run?6. Derive the long-run cost-minimizing demands for high- and low-skilled labour. Show thesolution to the cost-minimization problem on the graph
For a subsistence agricultural household, which of the following happen when the price of the staple they are producing increases? [SelectMultiple] Group of answer choices Due to profit effect, their utility as producers increases. The impact on overall welfare of the household is ambiguous since it depends on the relative forces of profit effect and price effect. Their is no effect since subsistence households never sell or buy their staple production. Due to price effect, their utility as consumers decreases.