The number of clients Aliyah can take on depends on the number of workers she hires as shown in the accompanying table. What is the marginal cost and marginal benefit of hiring each worker? Using the Rational Rule to maximize her economic surplus, how many workers should Aliyah hire?
Q: Suppose a group of chess players gather and decide to rank themselves in "popularity". The…
A: Players are people who play games and use different kinds of strategies to win the games. Each…
Q: many variables interact to produce particular outcomes, this is known as: Group of answer choices…
A: A variable refers to anything that changes values depending upon circumstances.
Q: Demand for hand sanitizer is surging around the globe as the new coronavirus spreads, prompting…
A: The demand for sanitizer has increased due to other factors than its price. Therefore, in this case,…
Q: Suppose a firm can earn the following level of profit depending on nature as well as employee effort…
A: Expected profit = Summation of (Probability* Profits)
Q: Times are tough in the labor market for new lawyers. In this market there are two types of lawyer,…
A: Given Times are tough in the labor market for new lawyers. In this market there are two types of…
Q: Over the past 15 years, obesity rates have increased sharply for high school dropouts and for people…
A: Obesity rate means the percentage of population that is overweight from a group of population.
Q: Describe any three managerial decisions that can be applied by the manager from the estimated demand…
A: A demand function gives the relationship between the quantity demanded and variable inputs.
Q: Kristi, a pharmacist, is planning on opening her own pharmacy. Kristi Pharmacy is expected to…
A: Given: The expected yearly revenue of Kristi Pharmacy is = $500,000 Kristi’s alternative employment…
Q: Suppose that an incumbent can commit to producing a large quantity of output before the potential…
A: As the game tree shows, the incumbent firm enjoys a first-mover advantage. By moving first, the…
Q: You have been appointed the new manager for Ghana Airways Company Limited, an international airline…
A: Q1 = 24 – 0.2P1 Economy TravelersQ2 = 10 – 0.05P2 Business Travelers TC = 35 + 40Q, Without…
Q: If someone takes a leave from the labor force for several years after having children and then they…
A: Labor force refers to the proportion of total adult population that is willing to work and has the…
Q: Suppose the local economy experiences an influx of both skilled and unskilled workers, what will…
A: Marginal productivity of labor can be defined as the increase in the total production of a company…
Q: Suppose a competitive firm can hire a new worker to produce 10 extra units of production by paying…
A: Value of marginal product of Labor (VMPL) is the income from the marginal product from Additional…
Q: A computer reseller needs to decide how many laptops to order next month. The lowest end laptop…
A: Given, a computer reseller needs to decide how many laptops to order next month The lowest end…
Q: For an output level above QE, the value of a unit to a buyer is the cost of a unit to a seller.…
A: Blank 1) Less than At equilibrium, the marginal benefit is equal to the marginal cost if the output…
Q: general rule is that, as international capital mobility for a country increases, the country's BP…
A: As a general rule, as intertemporal capital mobility for a country decreases, the country's BP curve…
Q: In the event of the death of a licensee, a temporary license may be issued to which of the following…
A: Answer: In the event of the death of a licensee, a temporary license may be issued to either…
Q: Two players: The employee (Linda) and the employer (Vera). Linda has to choose whether to pursue…
A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: A company has 700 employees who work 140 hours a month each. Each worker earns $37 per hour. There…
A: Given, Present employees = 700 Work per month = 140 hours/month Wages = $37/month Additional working…
Q: Recently, the owner of KFC Franchise decided to change how she compensated her top manager. Last…
A: Last year profit of KFC owner = GHC 110,000 ; Salary = GHC 50,000 ; total profit after expense =…
Q: Consider the model: log(wage) = + female + exper+ female * exper+ u, where exper is the years of…
A: log(wage) = + female + experience + (experience*female)…
Q: The production function of a small firm that produces tarpaulin is given by the table below. L 4 6 8…
A: The formula for output elasticity with respect to labor is calculated as ε=% change in quantity of…
Q: Due to an increased number of patients seeking COVID-19 tests and counselling the clinic and the…
A: Hi, according to our guidelines we are allowed to answer only 1 question with upto three…
Q: A housecleaning company receives $25 for each house cleaned. The table below gives the relation…
A: A firm will hire labor as long as wage rate is equal to value of marginal product of labor.
Q: A cleaning company specializes in cleaning floors. Their output is measured in square feet of floor…
A: Marginal cost (MC): - it is the additional cost incurred due to the production of additional units…
Q: What economic principle justifies the high salaries of some professional athletes? Suppose the…
A: Answer - "Thank you for submitting the question, But, we are authorized to solve one question at a…
Q: The rule for optimal human capital investment is that: the individual should increase years of…
A: Human capital refers to the monetary value of a worker's skills and expertise.Human capital includes…
Q: Moe Green estimates the cost of future projects for a large contracting firm. Mr. Green uses…
A: Moe Green when he estimates the cost, he uses the same techniques to estimates the costs of every…
Q: Each employer faces competitive weekly wages of $2,000 for whites and $1,400 for blacks. Suppose…
A: Hello. Since your question has multiple sub-parts, we will solve first three sub-parts for you. If…
Q: Paolo is a college student who lives in Chicago and provides math tutoring for extra cash. At a wage…
A: The price elasticity of supply helps in measuring the responsiveness of quantity supplied to a…
Q: What is the likelihood that firms would enter the market in the short-run? Use COVID-19 as a market…
A: The firms in the market would always want to earn positive economic profits in the short run after…
Q: Your firm imports manufactured goods from China. You are worried that U.S.-China trade negotiations…
A: Given: The marginal tax rate falls to = 35% to 15% An insurance firm pays for a trade insurance…
Q: Kristi, a pharmacist, is planning on opening her own pharmacy. Kristi Pharmacy is expected to…
A: Accounting profits are profits estimated by comparing the business revenue and cash expenses. They…
Q: Seventy-two percent of the members of the United Food and Commercial Workers Local 655 voted to…
A: Graph for the expected impact due to advertising. The above diagram illustrates that the market is…
Q: [Best Buy] Best Buy is known for prioritizing their customers by having an attentive staff as a way…
A: Market segmentation is the process of dividing a target market into smaller, more defined…
Q: A Gini ratio of 0.99999 would indicate that income distribution is: Group of answer choices almost…
A: Since, Gini ratio or Gini coefficient is basically used to measure the demographic distribution and…
Q: Find the conditional factor demand for factor \(x_2\) if the firm wants to produce \(y\ =\ 25.1\)…
A: Given information Production function Y=min(0.5X1,0.3X2) W1=5.3 W2=8.7 Y=25.1
Q: A worker receives CAD 3,000 of lump-sum transfers from the government annually and has 4,160…
A: Given: A worker receives a lump-sum amount of = CAD 3,000 Available hours she has = 4,160 hours per…
Q: require an additional 21,000 working hours within three months to be completed, and all the…
A: Given Number of employees=350 Initial number of hours per month =120 Initial wages per hour = $21…
Q: Consider the following two sets of individuals and their group preference rankings, aggregated using…
A: Arrows impossibility theory is part of social choice theory. it is used to find order and…
Q: unique complementary pairs and 5 unique substitute pairs
A: Complementary goods are those that are used together, These goods have negative cross elasticity, if…
Q: Adverse selection Group of answer choices is the result of assymetry of information between the…
A: In an economy, adverse selection is one of the cause of market failure.
Q: Workers in a company decided to rent a van instead of commuting going to work. The amount of rent is…
A: Rent for a van refers to the amount that the person renting pays to the owner of the van for the…
Q: gros profit per unit not including labour cost- $100 # Workers Output 1 20 2 36 3 48 4 56 5 60 6 62…
A: Given: Gross profit per unit not including labor cost- $100 To Find: If the wage rate is $1,000 a…
Q: Using the midpoint method, the elasticity of Amy's labor supply between the wages of $25 and $35 per…
A: here we calculate the Amy's supply of labor over this given wage range by following method given…
Q: Three people, Dora, Ellen, and Fabian, are offered to participate in a contest to win a $120 gift…
A: As per BNED Guidelines, we will answer the first question only. If you want us to solve the other…
-
Aliyah is preparing to expand her IT consulting company. The current market rate for IT professionals is $58,000 per year. Each employee she hires will also require a computer and equipment that costs $6,000 per employee annually. Hiring more employees means that Aliyah can provide consulting services to more clients each year. Each client Aliyah has will pay her $15,000 per year.
The number of clients Aliyah can take on depends on the number of workers she hires as shown in the accompanying table. What is the marginal cost and marginal benefit of hiring each worker? Using the Rational Rule to maximize her economic surplus, how many workers should Aliyah hire?
Number of workers Clients per year 0 0 1 11 2 20 3 27 4 32
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- A craft chocolate producer considers hiring one extra worker in production. Currently, the shop is selling 200 chocolate bars per day at a price of $6. With one extra worker, the manager estimates that they would be able to increase the output to 250 chocolate bars per day and that they would need to lower the price to $5.50 in order to sell them. The daily salary of this new employee would be the same as for the existing ones: $150. What should the manager do? Group of answer choices Reduce the number of workers working in his chocolate place Increase its selling price Turn down the new worker and maintain the same number of employees Increase the salary of all employees Hire the extra workerSuppose there are two identical job offers in the same competitive labor market for a software developer position. Both offers have the same salary of $80,000 per year. However, Job A allows the employee to work from home, while Job B requires the employee to commute to the office daily. The average monthly commuting cost for Job B is estimated to be $400. Calculate the compensating differential in this scenario, and determine if it makes economic sense for the employee to choose Job B over Job A. Assume a working year consists of 12 months.Latest statistics obtained from Board of Engineers Malaysia (BEM) official website states thatthere is currently a total of 14,794 registered Professional Engineers in Malaysia, as shown inFigure 1. This is slightly below 10% of the total Graduate Engineers registered with BEM.Most developed nations have an engineer to population ratio of 1:100, that is 1 engineer forevery 100 persons in the population. This means that there is still a shortage of registeredengineers in Malaysia since our population is approximately 32.7 million. Discuss the impact of a shortage in registered Graduate Engineers and ProfessionalEngineers to the nation. a) You are required to provide at least three (3) different impactsand include any credible references to support your discussion.b) Recommend at least four methods to increase the number of registered ProfessionalEngineers in Malaysia.(Answer must be at least 1500 words)
- There are 81 white seniors graduating from high school and 27 black seniors. a. All of the students with high school degrees apply to UW – Milwaukee. The admissions office looks at their records, and finds that 30% of black students drop out after the first year, compared to 15% of white students. If they have 85 openings, how many of each type of student should the admissions office hire to maximize their graduation rate? b. Suppose there is no difference in graduation rates between black and white students. However, the admissions office wants students who will get good grades. They don’t have access to grade histories of different students, but they can see that all 26 of the 27 black applicants went to high school in Milwaukee, whereas 70 of the 81 white applicants went to schools in the suburbs. The schools in the suburbs have very good academic ratings, whereas the schools in Milwaukee do not. If they have 85 openings, how many of each type of student should the admissions…You are a pricing manager at Argyle Inc.—a medium-sized firm that recently introduced a new product into the market. Argyle’s only competitor is Baker Company, which is significantly smaller than Argyle. The management of Argyle has decided to pursue a short-term strategy of maximizing this quarter’s revenues, and you are in charge of formulating a strategy that will permit the firm to do so. After talking with an employee who was recently hired from the Baker Company, you are confident that (a) Baker is constrained to charge $10 or $20 for its product, (b) Baker’s goal is to maximize this quarter’s profits, and (c) Baker’s relevant unit costs are identical to yours. You have been authorized to price the product at two possible levels ($5 or $10) and know that your relevant costs are $2 per unit. The marketing department has provided the following information about the expected number of units sold (in millions) this quarter at various prices to help you formulate your decision: Argyle…You are a pricing manager at Argyle Inc.—a medium-sized firm that recently introduced a new product into the market. Argyle’s only competitor is Baker Company, which is significantly smaller than Argyle. The management of Argyle has decided to pursue a short-term strategy of maximizing this quarter’s revenues, and you are in charge of formulating a strategy that will permit the firm to do so. After talking with an employee who was recently hired from the Baker Company, you are confident that:(a) Baker is constrained to charge $10 or $20 for its product,(b) Baker’s goal is to maximize this quarter’s profits, and(c) Baker’s relevant unit costs are identical to yours.You have been authorized to price the product at two possible levels ($5 or $10) and know that your relevant costs are $2 per unit. The marketing department has provided the following information about the expected number of units sold (in millions) this quarter at various prices to help you formulate your decision:…
- You are the owner of QuantCrunch Corporation, a company that recently spent $15,000 to develop a statistical software package. To date, you only have one client. A recent internal study revealed that this client’s demand for your software is Qd = 300 – 0.2P and that it would cost you $1,000 per unit to install and maintain software at this client’s site. Your assignment is to construct a report that compares (1) the profit that results from charging this client a single (profit-maximizing) per-unit price with (2) the profit that results from charging $1,450 for the first 10 units and $1,225 for each additional unit of software purchased. Answer the following questions in your report: What type of pricing strategy is (1)? What type of pricing strategy is (2)? Compare at least three strategies discussed in this module (including 1 and 2) in making your recommendation? Show your calculations.Over the last several decades improvements in computer software, hardware and robotics have dramatically altered the ability of machines to do complex repetitive tasks. Discuss the implications for semi-skilled skilled workersas a result of this improvement. Discuss how the cost of the new technology influences the choice of inputs used in production and the rate of adoption of the new technology. Can you please answer this question so there will be no plagiarism, you have answer for this question in your website, but more likely it is already copied by someone elseSuppose there are two different neighborhoods in a city. One neighborhood has 400 Black residents and 600 white residents. The other neighborhood has 800 Black residents and 400 white residents. What is the Dissimilarity Index (DI) equal to?
- Rail Tours, Inc., sells packaged tours on rail lines, including gourmet meals and a reserved bed. The most popular tours are in the autumn, when foliage colors are at their peak. The overnight package for Saturday and Sunday morning are especially heavily booked. A market survey firm has just completed a study in which they conclude that if the package cost is $200 per couple, then Rail Tours can expect to sell 400 spaces on a typical Saturday. If the price is raised to $225, then unit sales will drop to 390. If the price is raised further to $250, unit sales drop to 380. a) From the data given, write down the demand equation and determine its intercepts. Are there any precautions needed when operating at the extreme ends of the demand curve?b) The survey firm also reports that if per capita income changes, Rail Tours can expect a large change in bookings. In particular, if per capita income falls by 1%, then bookings will tend to fall by about 2%. Are tour packages a normal good?…Case: As part of the most recent collective bargaining agreement with employees, an employer must offer medical insurance at "reasonable, non-profit rates." The employer plans to self-insure in place of using a private insurance company. Statistical evidence suggests that the average household currently spends $450 per year for medical bills and $80 for health screening and routine check-ups. Administrative costs are expected to average $30 per family. The collective bargaining agreement dictates that the plan's coverages and rates be fixed for a period of two years. The auditor considers the choice of the plan to be extremely important. Consequently, the auditor has asked you to evaluate the three proposals listed below. Proposal A would charge a $350 premium with no deductible. Coverage is extended to pre-existing conditions, but to cover the non-deductible clause, health screening and routine check-ups are not covered. Proposal B charges a $250 premium with a $200…Suppose a manager is interested in implementing third-degree price discrimination. The manager knows that the price elasticity of demand for Group 1 is −2 and the price elasticity of demand for Group 2 is −1.2. Based on this information alone we can conclude that the price charged to Group 2 will be: Multiple Choice (a) the same as the price charged to Group 1. (b) lower than the price charged to Group 1. (c) higher than the price charged to Group 1. (d) There is insufficient information to determine whether Group 2 will have a higher, lower, or the same price as Group 1.
