erive the labor hiring rule for a profit maximizer firm in the short-run and give a graphical example to explain your argument. (no partial credit is given for the answers without a graphical explanation.)

Q: AFC Q (workers) (units) MPL FC VC TC AVC ΑTC MC (units) (S) ($) (S) (S) (S) (S) (S) 1 90 210 3 320 4…

A: The table is filled below using the following formulas MPL= Change in Q/ Change in L TC= VC+FC ie…

Q: 2 1 1 2 3 678 9 • Identify curves - for one isocost curve and one isoquant draw an arrow to indicate…

A: Isoquant refers to the curve that shows the different combinations of capital and labor that produce…

Q: Suppose that a shoe manufacturer that employs 6 workers is able to increase the average product of…

A: Marginal product is the change in the output because of employing additional labor.

Q: Quantity Quantity Marginal Return to Additional Labour Variable Cost Total Cost Fixed Cost ($) of of…

A: The marginal return for second worker is calculated as follows.

Q: If a firms hires one additional worker its output would increase from 50 to 60 units. In this…

A: Meaning of Marginal Product: The term marginal product refers to the situation when there is an…

Q: Labor demand In the long-run:describe what a firm will do when its long-run condition is not met,…

A: The Long Run is defined as a time period when all the factors of production and the costs are…

Q: Suppose that a shoe manufacturer that employs 6 workers is able to increase the average product of…

A: Marginal product is the formula that is used to determine how a change in one factor of production…

Q: Ithough individual labor supply curves, such as the one own, can be backward bending, the market…

A: Option B is the correct answer: higher wage rates will draw more people into a given market.…

Q: Why does the labour demand curve slope downwards?

A: Hello. Since your question has multiple parts, we will solve first question for you. If you want…

Q: Consider a small landscaping company run by Mr. Viemeister. He is considering increasing his firm's…

A: Marginal product of labor of the third unit would be the difference between the total product before…

Q: output using a typica course, and that hires workers in a competitive labor market. 1. Explain what…

A: A firms optimal level of input choices are achieved at the point where the value of marginal product…

Q: XYZ Co. operates in a competitive market. Its marginal product of labor is 1/L, and it takes the…

A: A perfectly competitive firm demands labor at the following point in the short run. MPL = W/P Where…

Q: Recently, the Boeing Commercial Airline Group (BCAG) recorded orders for more than 15,000 jetliners…

A: Here, it is given that Boeing and Airbnb share similar technology, similar output level, but the…

Q: Which of the following explains the slope of the demand curve for labor? a. the marginal…

A: Law of diminishing marginal productivity states that the marginal production from the additional…

Q: the labor hiring rule for a profit maximizer firm in the short-run and give a graphical example to…

A: In the short run, a profit maximizing firm will hire an extra labor as long as each additional…

Q: Click to see additional instructions Consider a firm that exists for one period. The value of…

A: Optimal level of employment is acquire in the overall economy when all firms employ resources so as…

Q: Derive the labor hiring rule for a profit maximizer firm in the short-run and give a graphical…

A: In the short run, a profit maximizing firm will hire an extra labor as long as each additional…

Q: a) Why does the labour demand curve slope downwards?

A: Hi, thank you for the question. As per the guidelines, we are allowed to attempt only first…

Q: On the following graph, use the blue points (circle symbol) to plot the firm's labor demand curve.…

A: Labour  Output Marginal product of Labour 0 0   1 20 20 2 39 19 3 57 18 4 72 15 5 84 12…

Q: 6. Suppose the hourly wage is $40, the price of each unit of capital is $50, and the price of output…

A: Note: There are multiple sub parts of the given question, therefore we shall answer only the first…

Q: Suppose the hourly wage is $10 and the price of each unit of capital is $25. The price of output is…

A: The production function is, f(E, K) = E 1/2K 1/2 The marginal product of labour is, MPE = (1/2)(K/E)…

Q: Which of the following statements is true with regards to the law of diminishing marginal returns…

A: The labor market in the economy determines the equilibrium wage rate and equilibrium employment…

Q: Explain how the marginal cost of labor (MCL) curves differ between a firm in a perfectly competitive…

A: The Marginal Cost of labour curve differs between a firm in a perfectly competitive input market and…

Q: It is easy to conclude that when hiring workers in the short run whose marginal productivity rises,…

A: The short-run is the time period in which fixed factors like buildings, machinery, etc. can not be…

Q: Charlie owns his own candy factory where he employs individuals to make his world-famous toffee. The…

A: a.The marginal product of labor is the change in the output due to a change in the quantity of labor…

Q: Consider a firm that employs capital and labour and uses the production technology Q = min[K, L]…

A: "Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: Suppose an auto manufacturer has one factoryin the United States and one in Mexico. The…

A: If a person, company, region, or nation to produce a higher quantity of goods or services with the…

Q: Suppose the hourly wage is $25, the price of each unit of capital i $50, and the price of output is…

A: Given information: Q = (EK)0.5 Wage rate (w) = $25 Cost of capital (r) = $50 Price of output (P) =…

Q: Why does the learning curve apply mainly to direct rather than indirect labor?

A: The learning curve implies that labor becomes more efficient after working for several years. This…

Q: g

A: Firm will choose the labour so as to maximize their profit. The condition which ensures the profit…

Q: (a) Why does the labour demand curve slope downwards? (b) A garment factory’s production function…

A: (a) Labor(L) demand(dd) curve slopes-downward because its shows a negative-relationship between…

Q: It is easy to conclude that when hiring workers in the short run whose marginal productivity rises,…

A: When the marginal product is increasing, the average product increases because the addition of every…

Q: Suppose you are considering hiring another worker. Also assume that you are at a firm that is…

A: We know that at the optimum: MRTS = MPL/MPK = w/r So here we have MPL = 5, MPK = 20 and w=2 and r=…

Q: What is one explanation for why this labor supply curve is upward sloping? O Firms are willing to…

A: The measure that depicts various quantities of labor being supplied at different price levels is…

Q: You are given the following schedule for the production of pens by a firm Labor Total Product 0 0…

A: The total product is the total product or the total output by the firm. The total product would be…

Q: erive the labor hiring rule for a profit maximizer firm in the short-run and give a graphical…

A: Short-run is a brief amount of time, and the firm cannot adjust for capital (K). The only thing…

Q: Describe backward bending labor supply curve by discussing the income and substitution effects?

A: Labor: - labor is one of the factors of production, any physical and mental work by humans against a…

Q: average produc

A: The output per unit of inputs of variable factors depicts the average product (AP). The additional…

Q: Derive the labor hiring rule for a profit maximizer firm in the short run and give a graphical…

A:

Q: onsider a firm that produces output using a typical production function as discussed in the ourse,…

A: A firms optimal level of input choices are achieved at the point where the value of marginal product…

Q: .With which of the theories of wages, is the name of John Stuart Mill associated? O Marginal…

A: To find : John Stuart Mill is associated with which theory of wages.

Q: What causes the labor supply curve sometimes to bend backward at higher wages? O It can be harder to…

A: A labor supply curve is a curve which shows the quantity supplied of labor at different wage rates.…

Q: A new coffee shop opens and to maximize profit it hires 5 workers at the competitive wage rate. The…

A: The value of marginal product is the marginal product multiplied by the product price.  VMP=MP×P If…

Q: a) Fill in the empty cells in the table.                You have been also given following…

A: MPl = Change in q / Change in L VMPL = Output price (P) x MPL Marginal profit = VMPL - W L q MPL…