EBK PRINCIPLES OF MICROECONOMICS (SECON
2nd Edition
ISBN: 9780393616149
Author: Mateer
Publisher: W.W.NORTON+CO. (CC)
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Question
Chapter 15, Problem 1SP
(a)
To determine
Explain whether the wages in construction is higher or lower than the other jobs.
(b)
To determine
Explain whether the left- handed workers make more or less than right- handed workers.
(c)
To determine
Explain the effect of change in wage for both right – handed and left – handed over time.
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Students have asked these similar questions
Suppose Kara maximizes her profits by hiring workers to produce hand-made soaps. Her soaps sell for $1 each. How should Kara decide on how many workers she should hire?
a.Hire workers up to the point when the price of her soaps starts to fall from $1
b.Hire workers up to the point when the total product of all her workers is at its maximum
c.Hire up to the point when the wage rate equals to the value of the marginal product of the last worker hired
d.Hire up to the point when the marginal product of the last worker hired is equal to zero
Which of the following correctly explains the effect of a variable on the labor demand curve?
A. If human capital increases, then we will move up the labor demand curve.
B. If the price of the product increases, then the labor demand curve will shift to the left.
C. If the number of firms in the market increases, then the labor demand curve will shift to the right.
D. If the wage increases, then the labor demand curve will shift to the right.
Suppose a firm finds itself in a situation where the marginal product of the last employee hired is 4 units per hour, and the marginal product of the last machinepurchased is 10 units per hour. If the wage is $20/hour and the hourly rental rate of a machine is $50, what should this firm do if it wants to be as productive aspossible?a. Lay off workers and use more machines.b. Hire workers and use less machines.c. Lay off workers and use less machines,d. Hire workers and use more machines.e. Nothing. This firm is already operating efficiently.
Chapter 15 Solutions
EBK PRINCIPLES OF MICROECONOMICS (SECON
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