Question 4 The following table shows the hourly wages, hours worked, and output (number of widgets produced) in one week for five widget makers. Worker 1 2 3 5 5 5.50 6.50 6 6.25 Hourly wage ($) Hours worked Output (widgets) 40 43 37 50 45 1000 1100 1000 1200 1100 Use MATLAB to answer these questions: a. How much did each worker earn in the week? b. What is the total salary amount paid out? c. How many widgets were made? d. What is the average cost to produce one widget? e. How many hours does it take to produce one widget on average? 4

Question 4 The following table shows the hourly wages, hours worked, and output (number of widgets produced) in one week for five widget makers. Worker 1 2 3 5 5 5.50 6.50 6 6.25 Hourly wage ($) Hours worked Output (widgets) 40 43 37 50 45 1000 1100 1000 1200 1100 Use MATLAB to answer these questions: a. How much did each worker earn in the week? b. What is the total salary amount paid out? c. How many widgets were made? d. What is the average cost to produce one widget? e. How many hours does it take to produce one widget on average? 4

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter16: The Markets For Labor, Capital, And Land

Section: Chapter Questions

Problem 17P

See similar textbooks

Similar questions

26. Suppose that you can schedule a worker for up to 4 hours per day. The total benefit andtotal cost functions are B(H) = 300H −20H2 and C(H) = 500H +60H2. The correspondingformulas for marginal benefit and marginal cost are MB(H) = 300 − 40H and MC(H) =500 + 120H. For how many hours should you schedule the worker?(a) 1.25 hours(b) 0.8 hours(c) 4 hours(d) 0 hours
Consider a worker who earns $20/hour in the labor market and receives $50 per week innon-labor income. Assume the total number of hours available for work (h) and leisure(L) is 168 hours per week (i.e., ? = 168 = ℎ + ?). a. Draw the budget constraint for this individual. Label the endowment point. b. What is the maximum value of consumption that this individual could achieve ina week? c. In the United States, the Fair Labor Standards Act requires workers to be paid 1.5times their usual hourly wage for “overtime” work, defined as work in excess of40 hours in a week. If this law applies to the worker described above, how does itchange the budget constraint? d. Now suppose Congress passes an income tax. The income tax applies to labor andnon-labor income. The Fair Labor Standard Act is still in effect. The first $1,000in weekly income is exempt from the tax. However, every dollar above $1,000 istaxed at a rate of 10%. (To be clear: the tax on $1,000 in income is 0, the tax on$1,001 is…
a. Draw the wage-schooling locus for someone for whom the returns to schooling decrease through college but increase after college. (Assume college is completed after 16 years of schooling and that one can receive at most 6 years of postcollege schooling.) b. On a new graph, plot the marginal rate of return to schooling implied by the wage-schooling locus described in part a. c. What can be said about a college graduate who faces the wage-schooling locus described in part a?
Discuss the Pareto optimal efficiency theory. Suppport your answer with a practical example?
why is the market for recycled aluminium good and the market for plastic bad in the US? Depict this with a firm input choice model. I understand that recycled plastic decreases in qualiy everytime it is recycled while aluminium does not and can be recylced without the decrease in quality, but I dont know how to depict this graphically
Suppose a society is producing capital and consumer goods. Draw productionpossibilities frontier for capital and consumer goods. Show the points that are not possible for aneconomy to achieve. Also show a point that is feasible but inefficient.
Farmer Joe’s production function is f(x1, x2) = x1/31 x1/32, where x1 isthe number of pounds of lemons he uses and x2 is the number of hours he spendssqueezing them. His cost function is c(w1, w2, y) = 2w1/21 w1/22y3/2, where y is thenumber of units of lemonade produced.(a) If lemons cost $1 per pound, the wage rate is $1 per hour, and theprice of lemonade is p, what is his marginal cost function?(b) What is his supply function?(c) If lemons cost $4 per pound, the wage rate is $9 per hour, and theprice of lemonade is p, explain in detail how these changes would affect theoriginal supply function in part (b)?
7. It can be argued that the theory of factor endowment is based ona. Identical preferences and tastesb. Even quality of factor inputsc. Homogeneous technologyd. All of the above
a. Compute the Pareto efficient provision of effort. b. Derive the decentralized provision of effort.
a. In your backyard at your home you have established a small workshop where you repair theequipment of your home that have gone out of order. Will this act of repairing your own householdequipment count as production? Explain. b. If a fisherman catches fish from river then which factor of production is he using for hisproduction? Explain this factor in detail.
In a standard consumer optimization problem in microeconomics, a consumer purchases any pair of goods untilU1U2=p1p2(?), at an interior solution, where Ux is the marginal utility of good x for the consumer and px is the price of good x, where x={1,2}. What is the corresponding optimality condition for a worker-consumer in his labour-leisure optimization problem and why is it just a variation on the standard optimality condition (?)?
Suppose you manage a factory with ten workers. Each worker’s output is determined by the equation q = e. Output sells in the market for a price of 40. The firm has fixed cost equal to 800, and variable costs aside from labor are 8 per unit of output. Worker utility is U = w – e2. Suppose you are paying workers a wage equal to bq. What is the profit- maximizing value of b? Suppose that the probability of worker error increases as the worker increases effort, and that worker error results in unusable output. Suppose that the probability of worker error is Pr[Error] = e/10. Then for worker effort level e, expected (usable) output is now determined by the equation E[q] = (1-Pr[Error]) x e. However, the problem is that you cannot detect errors until after the product is shipped to customers, meaning you pay workers for output before you know whether it is usable or not, and you have to refund your customers for unusable output. Demonstrate why you should not pay your workers the same…