If q=2 (square root of L); the wage rate is 4 and the price at which the good sells is 8 to maximize profits the firm should use more labor if the current L is less than.......
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- If there are diminishing returns to labor, then as more workers are hired the total amount produced by all of the workers will decrease. True FalseIf q=2(square root of L) and the price at which the good sells is 10 the demand curve for labor as a function of the wage rate w is given by the formula L=..........A firm produces output via the function: Q = L - (L2/800), where Q is the output per week and L is the number of labor hours per week. The firm’s additional cost of hiring an extra hour of labor is about $30 per hour (wage plus fringe benefits). The firm faces the fixed selling price, P = $50. How much labor should the firm employ?
- A housecleaning company receives $25 for each house cleaned. The table below gives the relation between the number of workers and the number of houses that can be cleaned per week. Number of Workers Houses Cleaned 1 9 2 17 3 24 4 30 5 35 Based on the information in the table, if the company want to maximize profit and hires three workers, the wage rate of a housecleaner can be no more thanSuppose a competitive firm is paying a wage of $12 an hour and sells its product at $3 per unit. Assume that labor is the only input. If, hiring another worker would increase output by three units per hour, then to maximize profits the firm should not change the number of workers it currently hires. not hire an additional worker. hire another worker. There is not enough information to answer the question.Consider a firm that manufactures surfboards. Presently the firm is hiring 5 workers at a wage rate of R20/hour. The firm is able to produce 50 surfboards per hour. The firm decides to hire an additional worker. The marginal product of that worker is 30 surfboards per hour. What is the marginal cost of output associated with hiring the sixth worker? R20 R1,50 R0,67 R2 R30
- Suppose a competitive firm is paying a wage of $12 an hour and sells its product at $3 per unit. Assume that labor is the only input. If the last worker hired increases output by three units per hour, then to maximize profits the firm should not change the number of workers it currently hires. lay off some of its workers. hire additional workers. There is not enough information to answer the question.Suppose a firm has some power in the product market and hires labor in a perfectly competitive labor market. If the market wage rate is $20, the marginal product of the last worker hired is 5, and the firm is hiring the profit-maximizing amount of labor, then the marginal revenue product of the last worker hired is _____ Group of answer choices $5. $1. $4. $20. $1.50.The labor supply curve is upward sloping because Question 3 options: workers are willing to work more hours at higher wages. workers will work as many hours as possible no matter the wage. employers will reduce the hours they employ as the wage rises. employers will hire a specific quantity of labor no matter the wage.
- Goleta Brewing Company hires only two types of labor, managers and brewing assistants (denoted M and B, respectively). GBC has the following Cobb-Douglas production function F(M,B) = M.5 B.5 and wants to produce 10 barrels of pale ale this week. If the wage of managers is $50 per hour and the wage of brewing assistants is $10 per hour, how many managers and brewing assistants should the firm hire (round to nearest whole number)? How does your answer change when the wage of managers decreases to $30 per hour and the wage of brewing assistants remains constant. Is this result consistent with your intuition?A small consulting firm is only interested in hiring graduates (denoted by S), but it does not know how many it should hire in order to be profit maximizing. Assume there is a competitive wage of $20 per hour and the production function is F(S)= 100S – (1/8)S2 . Hiring additional workers will increase production F(S) over relevant ranges of S. But is the 51st S more valuable than the 50th S in terms of her additions to overall production? What quantity of graduates should this firm hire and why does it stop hiring at this level of S? How does your answer change if the production function is F(S)= 200S –(1/8)S2 and the wage increases to $22?A firm finds the following relationship between workers’ productivity and the amount that workers lose if they are fired. Workers are paid $500 per week at other firms and all jobs last 50 weeks. Dollars lost by workers as a result of being fired Improvement in productivity because workers work harder to avoid losing their jobs (extra dollars to profit to firm) 1,250 1,750 1,750 2,750 2,000 3,500 2,500 4,500 3,250 4,750 If workers need to wait one week if they are fired, how much will this firm pay its workers? Construct a table to justify your answer. How many weeks of job search are needed so that this firm will pay its workers no more than they could get at other firms? What is the natural rate of unemployment in this labor market if all firms are in the same situation?
