Microeconomics (MindTap Course List)
10th Edition
ISBN: 9781285859484
Author: William Boyes, Michael Melvin
Publisher: Cengage Learning
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Chapter 15, Problem 8E
To determine
To explain:
The reason for difference in earning of Mrs. JA and a schoolteacher.
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Angela has been working at a real wage rate of $25 per hour. Illustrate in a diagram how Bruno’s decision to use more robots could affect Angela’s future levels of• real wage,• utility,• free time, and• consumption.Your diagram should have Angela’s daily free time on the horizontal axis and her daily consumption on the vertical axis. Briefly explain your diagram within 70 words
Q4.
The graph below represents Lisena’s Landscaping Service’s demand for labor in the town of Forest Hills. The price of cutting a standard-sized residential lawn is $50 and the market wage rate for a worker is $200 per day. Answer the questions below.
a. At the current market wage rate how many workers will the firm hire?b. Which economics principle can be used to explain why Lisena should NOT hire a fifth worker?c. What is the minimum number of lawns each worker should cut per day given wage rate of $200? Explain with a calculation.d. What happens to the demand for labor curve if the market price of cutting a lawn increases to $65? Explain your answer.e. What happens to the demand for labor curve if the market wage rate increases from $200 per day to $250 per day? Explain your answer.
draw a budget line for a person who works 2000 hours a year today at 16$ per hour and expects to work 2000 hours in the future at the same wage. then show the effect on the graph if he increases his hourly wage to 50$an hour
Chapter 15 Solutions
Microeconomics (MindTap Course List)
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