Q) The market demand for the output is P = 80-Q, where Q is the output level and P is the price per unit of output. A firm's production function is Q = 0.5L, where Q is the output level, and L is the amount of labor. If the labor supply function is PL = 10 + 0.5L, what is the price of labor at the competitive equilibrium in the labor market? Question 71 options: $20 $25 *$30 $40

Q) The market demand for the output is P = 80-Q, where Q is the output level and P is the price per unit of output. A firm's production function is Q = 0.5L, where Q is the output level, and L is the amount of labor. If the labor supply function is PL = 10 + 0.5L, what is the price of labor at the competitive equilibrium in the labor market? Question 71 options: $20 $25 *$30 $40

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter14: Labor Markets And Income

Section: Chapter Questions

Problem 1SCQ: Table 14.10 shows levels of employment (Labor), the marginal product at each of those levels, and...

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What determines the demand for labor for a firm operation in a perfectly competitive out market?
Table 14.10 shows levels of employment (Labor), the marginal product at each of those levels, and the price at which the film can sell output in the perfectly competitive market where it operates. What is the value of the marginal product at each level of labor? If the firm operates in a perfectly competitive labor market where the going market wage is 12, what is the films profit maximizing level of employment?
Suppose that a firm's production is given by: Q= 10L-L² , for L= 0 to 5, where L is labor input per day and Q is output per day. Derive and draw the firm's demand for labor if the firm's output sells for $10 in a competitive market. The marginal product of labor is 10-2L. a. How many hours of labor will the firm use when the wage is $30 per day? b. How many hours of labor will the firm use when the wage is $70 per day?
6. Q) The market demand for the output is P = 80 – Q, where Q is the output level and P is the price per unit of output. A firm’s production function is Q = 0.5L, where Q is the output level, and L is the amount of labor. If the labor supply function is PL = 10 + 0.5L, what is the price of labor at the competitive equilibrium in the labor market? Question 71 options: $20 $25 $30 $40 None of the above.
Consider the market for labor where both firms and workers are price takers. Output is produced using capital and labor.The marginal product of labor can be described by: 200 – 4L, where L is the number of workers hired. The price of the good produced is 5 per unit. a. Illustrate the demand for labor. Be sure to note the specific value of the vertical intercept. b. Suppose that the competitive firm must pay 100 for each worker. Determine the number of workers hired. (Determine the total income to capital. Show your work for both parts. c. Suppose that the price of the good rises but that the wage remains the same. Illustrate how the optimal choice of labor would change. No need to do the explicit calculation; just show the outcome and briefly explain.
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Widget Factory INC. in Wisconsin has the follwing production function F(L,K)= 2L1/2K1/2L represent the number of labour hours. workers at this factory are paid an hourly wage of 30$ and they rent capital at 25$ per hour. Since this is a competative market, the factory output gets per is output is $50 per unit. let's pretend the firm operate in the short run with capital fixed at 900, how many factory workers would widget factory inc. employ? what is their profit rate?
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1. Assume the quantity of envelopes licked per hour by Sticky Gums, Inc., is where L is the number of laborers hired per hour by the firm. Assume further that the envelope licking business is perfectly competitive with a market price of 1 cent per envelope. A. How much labor would be hired at a competitive wage of $10? What about $5? $2? Use these results to sketch a demand curve for labor. B. Assume that Sticky Gums hires its labor at an hourly wage of $10 what quantity of envelopes will be licked when the price of a licked envelope is 2 cents? What about 5 cents? 10 cents? Use your results to sketch a supply curve for licked envelopes.
Q13 Tha use of cannabis was legalized in Canada in 2017. Let's assume that the cannabis 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 cannabis. If cannabis sells for $10 per ounce in a perfectly competitive market, the MRP of this additional worker is Multiple Choice $7. can be either positive or negative. $120. $70. $10.