MICROECONOMICS-MINDTAP (1 TERM)
13th Edition
ISBN: 9780357686942
Author: Arnold
Publisher: CENGAGE L
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Chapter 13, Problem 3QP
To determine
Check whether the MRP and VMP are equal for a price taker.
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What is price taker meaning?
Define price taker .
Jumbo Enterprises is the sole producer of jumbo jets in the economy. Demand for jets is given by y=2122-201p, where y is the number of jets and p is the price of a jet. The
number of jets that Jumbo produces is a function of the number of engineers (N) that it hires. This function is given by y=0.8N. Engineers are hired in a competitive labor
market, where the wage is equal to $6.
Find Jumbo Enterprise's profit-maximizing choice of N.
Answer:
Chapter 13 Solutions
MICROECONOMICS-MINDTAP (1 TERM)
Ch. 13.1 - Prob. 1STCh. 13.1 - Prob. 2STCh. 13.1 - Prob. 3STCh. 13.1 - Prob. 4STCh. 13.2 - Prob. 1STCh. 13.2 - Prob. 2STCh. 13.2 - Prob. 3STCh. 13.2 - Prob. 4STCh. 13 - Prob. 1QPCh. 13 - Prob. 2QP
Ch. 13 - Prob. 3QPCh. 13 - Compare the firms least-cost rule with how buyers...Ch. 13 - Prob. 5QPCh. 13 - Prob. 6QPCh. 13 - Prob. 7QPCh. 13 - Prob. 8QPCh. 13 - Prob. 9QPCh. 13 - Prob. 10QPCh. 13 - Prob. 11QPCh. 13 - Prob. 12QPCh. 13 - Prob. 13QPCh. 13 - Prob. 14QPCh. 13 - Prob. 15QPCh. 13 - Prob. 16QPCh. 13 - Prob. 1WNGCh. 13 - Prob. 2WNGCh. 13 - Prob. 3WNGCh. 13 - Prob. 4WNGCh. 13 - Prob. 5WNG
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- Do you see any conflict between your desire to be as profitable as possible and your desire to pay employees a living wage?arrow_forwardWould the owner of a profit-maximizing clothing store hire another worker for $85 per day if that worker added faster service, increasing sales and revenue by $80 per day? Why or why not? Explain your answer.arrow_forwardExplain it correctly I upvote. Not copy pastearrow_forward
- “Managing pay in organisations is easy. You simply pay each person the going rate for doing their job.” To what extent do you agree with this view? Justify your answerarrow_forwardwhat are the two most significant issues that occur for the current marginalist theory of the company when the firm employs constant-returns-to-scale (CRS) technology? Please answer correctly.arrow_forwardWhy does a profit-maximizing firm hire workers up to the point where the wage equals the value of marginal product? Show that this condition is identical to the one that requires a profit-maximizing firm to produce the level of output where the price of the output equals the marginal cost of production.arrow_forward
- A firm's production function is Q = 5 + 25L - .5L2 + 30K – K2, |3D and its demand function is PQ = MRQ = d = $30. The prices of L and K are PL = $6 and PK = $12. Use Excel Solver to find the profit-maximizing and cost minimizing amounts of L and K to employ. The profit-maximizing and cost minimizing amount of L is: А. L = 16. L= 25. C. L= 38. D. L= 42. B.arrow_forwardArizona's unemployment insurance program is funded by a tax on employers. In general, the tax rate rises as the firm's history of layoffs increases. The minimum tax rate is 0.05% and rises to a maximum of 6.42%. Suppose a firm's layoff history exceeds the level that would normally result in the maximum rate. We would expect: a. The firm to have an incentive to lay off fewer workers than it might have otherwise b. The firm to have an incentive to lay off more workers than it might have otherwise c. The firm will lay off fewer workers than it would if the tax rate were the same regardless of layoff history. d. The firm's tax collections will subsidize other firms' UI DUIbenefits.arrow_forwardThe following table shows the relationship between the number of trainers working at the new gym (SD Fitness) and the number of clients they can train per week. These clients represent the output of the firm. Clients pay $60 per hour. Find the Marginal Product (MPL) for the 4th, 5th and 6th trainer. Find the Value of Marginal Product (VMPL) of the 4th, 5th and 6th trainer. SD Fitness’s trainers are paid $650 per week. How many trainers will the gym hire? How do you know?arrow_forward
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