Microeconomics (9th Edition) (Pearson Series in Economics)
9th Edition
ISBN: 9780134184241
Author: Robert Pindyck, Daniel Rubinfeld
Publisher: PEARSON
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Question
Chapter 14, Problem 11RQ
To determine
Increase in wage rate and its effect.
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Check out a sample textbook solutionStudents have asked these similar questions
Firms will hire additional workers as long as the wage:
a) is less than the marginal product of labor.
b) equals the marginal product of labor.
c) is greater than the marginal product of labor.
d) is less than the value of the marginal product of labor.
Alice runs a shoemaking factory that utilizes both labor and capital to make shoes. Which of the following would shift the factory’s demand for capital? You can select one or more answers from the choices shown a. Many consumers decide to walk barefoot all the time. b. New shoemaking machines are twice as efficient as older machines. c. The wages that the factory has to pay its workers rise due to an economy-wide labor shortage.
Suppose
a huge scientific breakthrough doubles the output that an additional houra huge scientific breakthrough doubles the output that an additional hour
of U.S. labor can produceof U.S. labor can produce.
As a result, there is ______ in the U.S. production function.
A.
an upward shiftan upward shift
B.
no shiftno shift
C.
a downward shifta downward shift
There is ______ in the U.S. demand for labor and ______ in the U.S. supply of labor.
A.
a decreasea decrease;
a decreasea decrease
B.
an increasean increase;
a decreasea decrease
C.
no changeno change;
an increasean increase
D.
an increasean increase;
no changeno change
Chapter 14 Solutions
Microeconomics (9th Edition) (Pearson Series in Economics)
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Similar questions
- “After the fifth worker is hired at the hourly wage $40, the output rate increases from 64 pairs of shoes per hour to 72 pairs per hour.” Given the statement, which of the following is correct after the fifth worker is hired? Group of answer choices The marginal cost (MC) becomes $8. The marginal physical product (MPP) per labor hour becomes 5. The marginal cost (MC) becomes $5. The marginal physical product (MPP) per labor hour becomes $40.arrow_forwardA firm uses two inputs in production: capital and labor. In the short run, the firm cannot adjust the amount of capital it is using, but it can adjust the size of its workforce. What happens to the firm’s average total cost curve, the average variable cost curve, and the marginal cost curve when the cost of renting capital increases? the cost of hiring labor increases?arrow_forwardCon Co. produces a collectible card game. Currently, the price of capital is at $50 and the price of labor is at $10. The marginal product of capital is 200 and the marginal product of labor is 30. To minimize cost of the given output, Con Co. should Use more capital Use more capital and labor Leave capital and labor as is Use more laborarrow_forward
- Which of the following represents the optimal combination of Capital and Labor under the goal of cost minimization in the long run? [MR=Marginal Revenue, MC=Marginal Cost, MPL=Marginal Product of Labor, MPK=Marginal Product of Capital, K=Capital, L=Labor, PL =Price of Labor, PK =Price of Capital] DK/DL = MPL/MPK MR > MC MPL/PL= MPK/ PK MPL = MPKarrow_forwardThe top graph below shows David’s preferences for leisure and consumption. In the bottom graph, "Supply of Labor," draw David’s Labor Supply curve based on your answers from the top graph.arrow_forwardThe price of factor A is GHC20 per units and the price of factor B is GHC300.00 per unit. The marginal product of factor A is 40 units and the marginal product of factor B is 60 units. Should the firm increase employment of factor A and decrease employment of factor B to minimise the total long run cost of producing existing output? Explainarrow_forward
- Can you draw( i need a graphs) labor supply function : U(c,l)=log(c)+log(l) where, c-represents the consumption level of the individual and l-represents the leisure, while the market wage is 10 and available time is 20. Find and Draw the labor supply function! Grapharrow_forwardIn the short run, the owner of a firm should continue to hire additional units of labor until: a. the price of the product is equal to the wage rate divided by the marginal product of labor. b. the wage rate is equal to the price of the product multiplied by the marginal product of labor. c. the marginal product of labor is equal to the wage rate divided by the product price. d. Both a and c are correct. e. All of the above are correct.arrow_forward
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