Question 3 (a) Why does the labour demand curve slope downwards? (b) A garment factory’s production function is provided in the table.The gross profit per unit (difference between selling price and material cost, but not including the cost of labour) is $100. # Workers Output 1 20 2 36 3 48 4 56 5 60 6 62 (i) If the wage rate is $1,000 a week, how many workers should the factory hire? (ii) If a surge in popularity for the factory’s brand allows them to raise the product price such that the gross profit rises to $150, how many workers will the factory hire now? (iii) Calculate the number of garments produced in each of the two cases above.

Question

Question 3

(a) Why does the labour demand curve slope downwards?

(b) A garment factory’s production function is provided in the table.The gross profit per unit (difference between selling price and material cost, but not including the cost of labour) is $100.

# Workers

Output

1

20

2

36

3

48

4

56

5

60

6

62

(i) If the wage rate is $1,000 a week, how many workers should the factory hire?

(ii) If a surge in popularity for the factory’s brand allows them to raise the product price such that the gross profit rises to $150, how many workers will the factory hire now?

(iii) Calculate the number of garments produced in each of the two cases above.

Expert Answer

Want to see the step-by-step answer?

Check out a sample Q&A here.

Want to see this answer and more?

Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*

*Response times may vary by subject and question complexity. Median response time is 34 minutes for paid subscribers and may be longer for promotional offers.
Tagged in
Business
Economics

Business Economics

Related Economics Q&A

Find answers to questions asked by students like you.

Q: Question 10.10  The non-discriminating pure monopolist must decrease price on all units of a product...

A: Monopoly is a market form which indulges in discriminating generally because of the motive of profit...

Q: Macroeconomics question a,b and c

A: a. 2006 is the base year. For 2006 the total quantity of long beans bought is 100 strands, 50 kilos ...

Q: Explain why frictional and structural unemployment are unavoidable in an economy. Examine the measur...

A: The unemployment is the economic situation in which people are willing to work at the prevailing wag...

Q: Q27 How are the following three questions related: 1) Do all demand curves slope downward? 2) How do...

A: Macroeconomics is the study of whole or aggregate things. For example, Macroeconomics studies the ge...

Q: Solve the attachment

A: The monetary policy is implemented using the tools of interest rates, open market operations, and ch...

Q: a) Calculate the demand for good X in this market at the current price level. How much revenue would...

A: Since you have asked multiple questions, we will solve the first question for you. If you want any s...

Q: The monetary transmission mechanism can be depicted in the form of a graphor using symbols. Explain,...

A: Open market operations is a process that involves the central bank of a nation to buy or sell govern...

Q: Explain the difference between TANF, the earned income tax credit, SNAP, and Medicaid.

A: TANF: It provides a fixed amount to the state for poor people. EITC: It works for the low-to-moderat...

Q: We have export and import data of a country for the last two years.  In addition, let's assume that ...

A: According to the comparative advantage, the country produces only those good which have lower opport...

Q: Demonstrate a willingness to critically assess the impact of economic policies on economic efficienc...

A: These are the various economic policies adopted by the government in order to economic efficiency in...

Q: A multi-plex theatre area is experiencing a decline in the number of tickets sold, falling revenues,...

A: Click to see the answer

Q: Gomez runs a small pottery firm. He hires one helper at $12000 per year, pays annual rent of $5000 f...

A: Accounting profit is the net profit of a firm which is total revenue minus explicit costs. Economic ...

Q: What unique factors in the 1970s era caused widespread inflation?

A: According to the Phillips curve , there exists an inverse relationship between inflation and unemplo...

Q: The following information is provided about an open economy with a government. Use theinformation to...

A: The following information is provided about an open economy with a government- C = 450 + 0.4Y I = 3...

Q: Mr Brown has recently been retrenched. The firm he worked for had to retrencha number of staff due t...

A: Frictional unemployment is the one that takes place from the unavoidable delays in time during findi...

Q: Colonizers were more likely to ____  the power of government if they intended a long-term stay in th...

A: Hi, thanks for the question. As per the guideline we are allowed to attempt the first question. If y...

Q: Suppose Honda’s total cost of producing 4 cars is $225,000 and its totalcost of producing 5 cars is ...

A: Note : Since you have uploaded two questions together , only the first question shall be answered . ...

Q: The inverse market demand in a homogeneous-product Cournot duopoly is P = 100 – 2(Q1 + Q2) and costs...

A: Note : Since there are multiple sub parts of the question , only the first three sub parts shall be ...

Q: A demand schedule for a normal good is as follows: Price               Quantity demanded Rs.230    ...

A: The Law of demand states that when the prices of goods rises, keeping other things constant the dema...

Q: Q6 When consumers face rising gasoline prices, they typically reduce their quantity demanded mor...

A: The law of demand states that if the price increases when other things remain the same, it will lead...

Q: 1. What are the possible sources of capital: Microeconomics business concept 2. Enumerate eight (8...

A: Capital is defined as the financial asset, which helps in expanding the production level of the econ...

Q: a. Is it possible for total utility to increase while marginal utility diminishes?Explain.  b. Mary ...

A: Note: As per the guidelines we’ll answer the 1st question. Please submit a new question by specifyin...

Q: 2.1 The production function illustrates the relationship between..........    and..................

A: (2.1)The production function illustrates the relationship between..........    and.....................

Q: 12) What is meant by Spare capacity? Define it. 13) How did the Yom Kippur War and the so called “Ar...

A: Spare capacity is one of the important measures of capacity utilization. Capacity utilization refers...

Q: When both supply and demand increase for a certain good, what would happen to the equilibrium price ...

A: 1) When both demand and supply increase then their would be three cases Case 1: where the increase i...

Q: 31. Based on the above figure, for which of the following levels of output at Ike's Ice Cream Kitche...

A: Given the cost curves, the relationship between cost and product curves is that when  MC= AVC, Then ...

Q: According to the quantity theory, if constant growth in the money supply is combined with fluctuatin...

A: According to the quantity theory, if constant growth in the money supply is combined with fluctuatin...

Q: 1. Suppose the total cost to a firm of producing a quantity q of some commodity is C(4) - 490 + 20g ...

A: a) The marginal cost of the firm can be calculated through the derivation of the cost function with ...

Q: You are provided with the demand and supply curves for bottles of apple juice. $14 $12 Supply $10 $8...

A: Answer - Given in the question - The price floor of $10 per bottle of apple juice  The Deadweight lo...

Q: _______________________ happens when the economy is producing at its potential and unemployment is a...

A: Full employment GDP occurs at where the country producing at potential and unemployment is at the na...

Q: a) What is the equilibrium wage rate and equilibrium level of employment? A. $15 and 35 units of la...

A: In a labor market, equilibrium is set at a point where demand for labor equates supply of labor.

Q: People base their labor supply on the because they care about Select one: O a real wage; what their ...

A: Answer to the question is as follows :  

Q: What is long run and short run production? What is immediate market period

A:   Meaning of Production: The term production refers to the situation under which the manufacturer ta...

Q: Use an aggregate demand and supply diagram to illustrate and explain how each of the following will ...

A: Note: As per the guidelines we will answer only three subparts. Please resubmit the question again b...

Q: a. Define economies of scale and explain why they might arise. Definediseconomies of scale and expla...

A: Note:  We’ll answer the first question since the exact one wasn’t specified. Please submit a new que...

Q: 49. Archibald's Tattoos is a perfectly competitive firm. The firm's costs are shown in the table abo...

A: A perfectly Competitive Firm maximizes profit by producing output at a level where P = MR = MC or MR...

Q: Mary has two dinner options available: eating a home cooked meal for $150 per meal, or at a restaura...

A: Mary has two dinner options available: eating a home-cooked meal for $150 per meal, or at a restaura...

Q: What is the relationship between price elasticity and position on the demand curve? For example, as ...

A: Since you have asked multiple question, we will solve the first question for you. If you want any sp...

Q: see the table below to answer the questions that follow YEAR 2019 2018 2017 2016 CPI 231.8 212....

A: CPI is measured using fixed basket of goods. 

Q: Consider an insurance contract with the premium r=$200 and payout q=$800.  a.) John has healthy-stat...

A: a. Fair contract premium can be calculated by using the following formula. Substitute the respecti...

Q: The market determined price in a perfectly competitive industry is P = Rs. 10. Suppose thatthe total...

A: Given, P = Rs. 10  TC = 1000+2Q+0.01Q2  

Q: Question 16.16.  If the price-elasticity coefficient for a good is .75, the demand for that good is ...

A: Elasticity is defined as the responsiveness or sensitiveness on the demand if the factor influencing...

Q: The following information is provided about an open economy with a government. Use theinformation to...

A: Gross domestic product (GDP) refers to the total value of all the final goods and services that prod...