Exploring Microeconomics
8th Edition
ISBN: 9781544339443
Author: Sexton, Robert L.
Publisher: Sage Publications, Inc., Corwin, Cq Press,
expand_more
expand_more
format_list_bulleted
Question
Chapter 16, Problem 17P
To determine
The marginal productivity theory of income distribution is to be determined.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Suppose that labor is the only input used by East West University. The price of a cheakup is BDT 200 and the equilibrium wage of dentist (labor) is BDT 1000. The table below shows the dentists total product schedule.
Quantity of dentists -------------- Quantity of chekups
0 0
2 20
6 40
16 70
a) Draw a table to present the marginal product of labor (MPL) for each dentist and the value of the marginal product of labor (vMPL) per dentist.
b) How many dentist should be hired to maximize profit and how many chekups can be produced?
Which of the following explains the slope of the demand curve for labor?a. the marginal productivity theoryb. the law of diminishing marginal productc. the practice of featherbeddingd. the result of monopsony
what factor determine movement along demand curve for labour and increase or decrease in it?
why theory of distribution is special case of the theory of pricee?
Chapter 16 Solutions
Exploring Microeconomics
Knowledge Booster
Similar questions
- What shapes would you generally expect a total product curve and a marginal product curve to have?arrow_forwardOther than the demand for labor, what would be another example of a 'derived demand?arrow_forwardDiscuss Veblen’s theory of distribution as regards to 1) how it extends and modifies the division of labor, 2) the principal differences between Veblen’s theory of distribution and marginal productivity theory, 3) how is Veblen’s distribution theory connected to his class theory.arrow_forward
- Your enterprising uncle opens a sandwich shopthat employs 7 people. The employees are paid$12 per hour, and a sandwich sells for $6. If youruncle is maximizing his profit, what is the value ofthe marginal product of the last worker he hired?What is that worker’s marginal product?arrow_forwardHow is the value of marginal product of labor (VMPL) defined? a.Price of output multiplied by the output of the last worker hired b.Price of output multiplied by the price of the last worker hired c.Price of the last worker hired d.Price of outputarrow_forwardl.C<ldbelly Co. sells pencils in a perfectly competitiveproduct market and hires workers in a perfectly competitivelabor matkct. Assume that the market \\'age rate forworkers is $150 per day.a. What rule should Lead belly follow to hire theprofit-maximizing amount of Labor?b. At the profit-maximizing level of output, the marginalproduct of the last worker hired is 30 boxesof pencils per day. Calculate the p rice of a box ofpencils.c. Uraw a diagram of the labor market for pencil workers(as in Figure 4 of this chapter) next to a diagramof the labor supply and demand for Lcadbelly Co. (asin Figure 3). Label the equilibrium wage and quantityof labor for both the market and the firm. H0\\1 arethese diagrams related?d. Suppose some pencil workers switch to jobs in thegrowing computer industry. On the side-by--sidediagrams fmm part (c), show how this changeaffects the equilibrium wage and quantity of Laborfor both the pencil market and lor Leadbelly. Howdocs this change affect the…arrow_forward
arrow_back_ios
arrow_forward_ios
Recommended textbooks for you
Exploring EconomicsEconomicsISBN:9781544336329Author:Robert L. SextonPublisher:SAGE Publications, Inc
Principles of Economics 2eEconomicsISBN:9781947172364Author:Steven A. Greenlaw; David ShapiroPublisher:OpenStax
Microeconomics: Principles & PolicyEconomicsISBN:9781337794992Author:William J. Baumol, Alan S. Blinder, John L. SolowPublisher:Cengage Learning
Exploring Economics
Economics
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:SAGE Publications, Inc
Principles of Economics 2e
Economics
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:OpenStax
Microeconomics: Principles & Policy
Economics
ISBN:9781337794992
Author:William J. Baumol, Alan S. Blinder, John L. Solow
Publisher:Cengage Learning