Study Guide for Microeconomics
9th Edition
ISBN: 9780134741123
Author: Robert Pindyck, Daniel Rubinfeld
Publisher: PEARSON
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Question
Chapter 14, Problem 1E
(a)
To determine
Profit maximising quantity of labor.
(b)
To determine
New Profit maximising quantity of labor as the wage increases.
(c)
To determine
New Profit maximising quantity of labor as the price increases.
(d)
To determine
Technological breakthrough and the changes.
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Students have asked these similar questions
(1) If the demand for product Y increases significantly, then
A- the demand for the labor used to make Y decreases. B-the quantity of labor supplied to produce Y will decrease. C-the supply of labor to produce Y will increase. D-only the quantity demanded of labor increases
E-the demand for the labor used to make Y increases
(2)If the wage in a perfectly competitive labor market is $15 and the marginal product of the last worker employed is 3 units, what must be the market price for the good being produced? Assume a perfectly competitive output market.
A- $5. B-$12. C-$15. D-$18. E-$45
Suppose a firm purchases labor in a competitive labor market and sells it product in a competitive product market. The firm's elasticity of demand for labor is -2.50. Suppose the wage increases by 4%. By what percentage will the quantity of labor hired by the firm change? Show your work.
Assume that the market for unskilled workers is perfectly competitive and that the demand for unskilled workers is relatively elastic. The government imposes a minimum wage in this market.
Using a correctly labeled graph, show the following.
a. The market wage rate paid to hired unskilled workers.
b. The number of unskilled workers hired.
c. The number of unskilled workers still looking for employment.
Assume that unskilled workers are the primary source of labor in the agricultural industry, strawberries. Use a correctly labeled graph of the strawberry market to explain how the minimum wage law will affect the market for strawberries and identify the following.
d. The price of strawberries.
e. The quantity of strawberries.
Chapter 14 Solutions
Study Guide for Microeconomics
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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Similar questions
- Name some factors that can cause- a shift in the supply curve in labor markets.arrow_forwardIn a competitive labor market, the demand for and supply of labor determine the equilibrium wage rate and the equilibrium level of employment. Discuss the relationship between how these markets determine the wage rate and the quantity of labor that should be employed. Share an example, beyond your textbook, that demonstrates this relationshiparrow_forwardQ5 Those working for Amazon have been trying to form a union. Suppose that these workers are successful in forming a union and call themselves the Amazon Delivery Workers. Assume the union successfully negotiated a 14 percent wage increase and the result was that the quantity of labour demanded decreased by 10 percent. Given a fixed labour demand curve, we can conclude that Multiple Choice labour demand is inelastic. the coefficient of elasticity of labour demand is equal to 1. labour demand is elastic. the labour demand curve is upsloping. economies of scale has been achieved.arrow_forward
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