MICROECONOMICS - CONNECT ACCESS
21st Edition
ISBN: 9781264197071
Author: McConnell
Publisher: MCG
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Chapter 17, Problem 1RQ
To determine
The reason for higher level of wage in the developed country.
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Brenda owns a construction company that employs bricklayers and other skilled tradesmen. Her firm’s MRP for bricklayers is $22.25 per hour for each of the first seven bricklayers, $18.50 for an eighth bricklayer, and $17.75 for a ninth bricklayer. Given that she is a price taker when hiring bricklayers, how many bricklayers will she hire if the market equilibrium wage for bricklayers is $18.00 per hour? a. Zero. b. Seven. c. Eight. d. Nine. e. More information is required to answer this question
Complete the following table that shows the labor demand for a firm that is hiring labor competitively and selling its product in a purely competitive market.
a. How many workers will the firm hire if the market wage rate is $27.95? $19.95? Explain why the firm will not hire a larger or smaller number of units of labor at each of these wage rates.
b. Show in schedule form and graphically the labor demand curve of this firm.
Units of Labor
Total Product
Marginal Product
Product Price
Total Revenue
Marginal Reveune Product
0
0
__________
$2
$__________
$__________
1
17
__________
$2
$__________
$__________
2
31
__________
$2
$__________
$__________
3
43
__________
$2
$__________
$__________
4
53
__________
$2
$__________
$__________
5
60
__________
$2
$__________
$__________
6
65
__________
$2
$__________
$__________
My previous question was incomplete!
Aliyah is preparing to expand her IT consulting company. The current market rate for IT professionals is $58,000 per year. Each employee she hires will also require a computer and equipment that costs $6,000 per employee annually. Hiring more employees means that Aliyah can provide consulting services to more clients each year. Each client Aliyah has will pay her $15,000 per year.
The number of clients Aliyah can take on depends on the number of workers she hires as shown in the accompanying table. What is the marginal cost and marginal benefit of hiring each worker? Using the Rational Rule to maximize her economic surplus, how many workers should Aliyah hire?
Number of workers
Clients per year
0
0
1
11
2
20
3
27
4
32
Chapter 17 Solutions
MICROECONOMICS - CONNECT ACCESS
Ch. 17.3 - Prob. 1QQCh. 17.3 - Prob. 2QQCh. 17.3 - Prob. 3QQCh. 17.3 - Prob. 4QQCh. 17.A - Prob. 1ADQCh. 17.A - Prob. 2ADQCh. 17.A - Prob. 3ADQCh. 17.A - Prob. 4ADQCh. 17.A - Prob. 1ARQCh. 17.A - Prob. 2ARQ
Ch. 17.A - Prob. 3ARQCh. 17.A - Prob. 4ARQCh. 17.A - Prob. 1APCh. 17.A - Prob. 2APCh. 17 - Prob. 1DQCh. 17 - Prob. 2DQCh. 17 - Prob. 3DQCh. 17 - Prob. 4DQCh. 17 - Prob. 5DQCh. 17 - Prob. 6DQCh. 17 - Prob. 7DQCh. 17 - Prob. 8DQCh. 17 - Prob. 9DQCh. 17 - Prob. 10DQCh. 17 - Prob. 1RQCh. 17 - Prob. 2RQCh. 17 - Prob. 3RQCh. 17 - Prob. 4RQCh. 17 - Prob. 5RQCh. 17 - Prob. 6RQCh. 17 - Prob. 7RQCh. 17 - Prob. 1PCh. 17 - Prob. 2PCh. 17 - Prob. 3PCh. 17 - Prob. 4PCh. 17 - Prob. 5P
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