In a certain economy the production function is Y= A(100N- 0.50N²), where Y is output, A is productivity, and N is total hours worked. The marginal product of labor associated with this production function is MPN= A(100 – 1.0N). a. The supply of labor is NS = 45 + 0.10w, where w is the real wage. Initially the value of A is equal to 1.0. Find the equilibrium levels of output, hours worked and the real wage. (Note that the MPN curve is the same as the labor demand curve, with the real wage replacing the MPN). The equilibrium value of the real wage is 50. (Enter your response rounded to two decimal places.) The equilibrium value of employment (hours worked) is (Enter your response rounded to two decimal places.)

In a certain economy the production function is Y= A(100N- 0.50N²), where Y is output, A is productivity, and N is total hours worked. The marginal product of labor associated with this production function is MPN= A(100 – 1.0N). a. The supply of labor is NS = 45 + 0.10w, where w is the real wage. Initially the value of A is equal to 1.0. Find the equilibrium levels of output, hours worked and the real wage. (Note that the MPN curve is the same as the labor demand curve, with the real wage replacing the MPN). The equilibrium value of the real wage is 50. (Enter your response rounded to two decimal places.) The equilibrium value of employment (hours worked) is (Enter your response rounded to two decimal places.)

Principles of Economics (MindTap Course List)

8th Edition

ISBN:9781305585126

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter18: The Markets For The Factor Of Production

Section: Chapter Questions

Problem 9PA

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