Pearson eText Microeconomics -- Access Card
2nd Edition
ISBN: 9780136849513
Author: Acemoglu, Daron, Laibson, David, List, John
Publisher: PEARSON
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Question
Chapter 16, Problem 5P
(i)
To determine
Reason why extraordinary people will choose to go to college while capable people do not.
(ii)
To determine
Reason for paying high school graduates
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Cindy is a baker and runs a large cupcake
shop. She has already hired 11 employees and
is thinking of hiring a 12th. Cindy estimates that
a 12th worker would cost her $100 per day in
wages and benefits while increasing her total
revenue from $2,600 per day to $2,750 per
day. Should Cindy hire a 12th worker?
1. Yes.
2. No.
3. You need more information to figure this
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There will always be people out of work. True or false
Refer to the News Wire to answer one question.
NEWS WIRE: UNEQUAL WAGES
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Major
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Political Science
Philosophy
Nutrition
English
Education
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Median Starting
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$ 101,200
92,300
74,500
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59,600
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48,700
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36,600
Source: "College Salary Report, PayScale, 2020, www.payscale.com.
Assuming that a college graduate on average earns her MRP, what is the MRP for a newly hired
Economics major in 2020?
Instructions: Enter your response as a…
Chapter 16 Solutions
Pearson eText Microeconomics -- Access Card
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