Principles of Microeconomics, Student Value Edition Plus MyLab Economics with Pearson eText -- Access Card Package (12th Edition)
12th Edition
ISBN: 9780134421315
Author: Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher: PEARSON
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Chapter 10, Problem 2.3P
To determine
Compensation to employees.
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Assume the Jacksonville Jaguars, a football team, are in the process of hiring players. The following hypothetical table of data gives the necessary
information to the manager to hire quarterbacks.
Salary
(Thousands of
dollars)
Number of
Quarterbacks
0
Đľ
100 1
200
2
300
3
400
4
500
5
Total Cost of
Quarterbacks
(Thousands of
dollars)
Marginal Factor Cost
(MFC)
Marginal Revenue
Product (MRP)
(Thousands of
dollars)
(Thousands of dollars)
100
700
100
300
650
400
500
600
900
700
550
1,600
900
500
2,500
On the following graph, use orange points (square symbol) to plot the labor supply curve for quarterbacks, starting with point (1, 100). Next, use
green points (triangle symbol) to plot the marginal factor cost curve on the midpoints of the horizontal axis, starting with point (0.5, 100).
Note: Plot points from left to right in the order you would like them to appear. Points will connect automatically.
SALARY (Thousands of dollars)
1000
900
800
700
Labor Supply
600
MFC
MRP
500
400
300
200
100…
5. In Chapter 9 of your text, complete Exercise #3 found on page 321.
Suppose that you observe that the wages for accountants in your town have gone up and that the
number of accountants employed has also gone up. Which one of the following conditions could
explain this? Illustrate your answer with a graph and explain in a brief paragraph.
a) Businesses are failing, reducing the need for accountants.
b) Many accountants are leaving the field in order to train to become financial analysts
instead.
c) A rash of business scandals has increased the demand for auditing services performed by
accountants.
d) The local university has just graduated an unusually large group of accountants.
49. Which of the following sports has generally had the highest average player salary?
MLB
NBA
NFL
O European Soccer
Chapter 10 Solutions
Principles of Microeconomics, Student Value Edition Plus MyLab Economics with Pearson eText -- Access Card Package (12th Edition)
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