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Consider Live Happley Fields, a small player in the strawberry business whose production has no individual effect on wages and prices. Live Happley's production schedule for strawberries is given in the following table:

Consider Live Happley Fields, a small player in the strawberry business whose production has no individual effect on wages and prices. Live Happley's production schedule for strawberries is given in the following table:

Exploring Economics
Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter16: The Markets For Labor, Capital, And Land
Section: Chapter Questions
Problem 13P
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please also do the graph. thank youuuu

Consider Live Happley Fields, a small player in the strawberry business whose production has no individual effect on wages and prices. Live Happley's production schedule for strawberries is given in the following table: Labour Output (Number of workers) (Kilograms of strawberries) 17 3 24 4 30 35 Suppose that the market wage for strawberry pickers is $100 per worker per day, and the price of strawberries is $18 per kilogram. On the following graph, use the blue points (circle symbol) to plot Live Happley's labour demand curve when the output price is $18 per kilogram. Note: Remember to plot each point between the two integers. For example, when the number of workers increases from 0 to 1, the marginal revenue product of labour for the first worker should be plotted with a horizontal coordinate of 0.5, the value halfway between 0 and 1. Line segments will automatically connect the points. 200 180 Demand P = $18 180 140 120 Demand P = $14 100 80 60 40 20 WAGE (Dollars per worker) 9,
Transcribed Image Text:Consider Live Happley Fields, a small player in the strawberry business whose production has no individual effect on wages and prices. Live Happley's production schedule for strawberries is given in the following table: Labour Output (Number of workers) (Kilograms of strawberries) 17 3 24 4 30 35 Suppose that the market wage for strawberry pickers is $100 per worker per day, and the price of strawberries is $18 per kilogram. On the following graph, use the blue points (circle symbol) to plot Live Happley's labour demand curve when the output price is $18 per kilogram. Note: Remember to plot each point between the two integers. For example, when the number of workers increases from 0 to 1, the marginal revenue product of labour for the first worker should be plotted with a horizontal coordinate of 0.5, the value halfway between 0 and 1. Line segments will automatically connect the points. 200 180 Demand P = $18 180 140 120 Demand P = $14 100 80 60 40 20 WAGE (Dollars per worker) 9,
200 180 Demand P = $18 180 140 120 Demand P = $14 100 80 60 40 20 2 3 LABOUR (Number of workers) 1 worker At the given wage and price level, Live Happley should hire 2, 3, 4, or 5 workers Suppose that the price of strawberries decreases to $14 per kilogram, but the wage rate remains at $100. On the previous graph, use the purple points (diamond symbol) to plot Live Happley's labour demand curve when the output price is $14 per kilogram. 1,2,3,4,5 Now Live Happley should hire Workers when the output price is $14 per kilogram. Assuming that all strawberry-producing firms have similar production schedules, a decrease in the price of strawberries will cause the demand for strawberry pickers to decrease supply of increase Suppose that wages decrease to $90 due to a decreased demand for workers in this market. Assuming that the price of strawberries remains at $14 per kilogram, Live Happley will now hire 1,2,3,4,5 workers WAGE (Dollars per worker)
Transcribed Image Text:200 180 Demand P = $18 180 140 120 Demand P = $14 100 80 60 40 20 2 3 LABOUR (Number of workers) 1 worker At the given wage and price level, Live Happley should hire 2, 3, 4, or 5 workers Suppose that the price of strawberries decreases to $14 per kilogram, but the wage rate remains at $100. On the previous graph, use the purple points (diamond symbol) to plot Live Happley's labour demand curve when the output price is $14 per kilogram. 1,2,3,4,5 Now Live Happley should hire Workers when the output price is $14 per kilogram. Assuming that all strawberry-producing firms have similar production schedules, a decrease in the price of strawberries will cause the demand for strawberry pickers to decrease supply of increase Suppose that wages decrease to $90 due to a decreased demand for workers in this market. Assuming that the price of strawberries remains at $14 per kilogram, Live Happley will now hire 1,2,3,4,5 workers WAGE (Dollars per worker)
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