MICROECONOMICS LL W CONNECT 21E
21st Edition
ISBN: 9781307215328
Author: McConnell
Publisher: MCG/CREATE
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Chapter 19, Problem 3RQ
To determine
Whether should the firm produce coal or not.
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. Suppose that a car dealership wishes to see if efficiency wages will help improve its salespeople’s productivity. Currently, each salesperson sells an average of one car per day while being paid $20 per hour for an eight-hour day. LO17.8
What is the current labor cost per car sold?
Suppose that when the dealer raises the price of labor to $30 per hour the average number of cars sold by a salesperson increases to two per day. What is now the labor cost per car sold? By how much is it higher or lower than it was before? Has the efficiency of labor expenditures by the firm (cars sold per dollar of wages paid to salespeople) increased or decreased?
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If the firm’s goal is to maximize the efficiency of its labor expenditures, which of the three hourly salary rates should it use: $20 per hour, $30 per hour, or $40 per hour?…
A software company in Silicon Valley uses programmers (labor) and computers (capital) to produce apps for mobile devices. The firm estimates that when it comes to labor, MPL = 5 apps per month while PL = $1,000 per month. And when it comes to capital, MPC = 8 apps per month while PC = $1,000 per month. If the company wants to maximize its profits, it should: LO16.5 a. Increase labor while decreasing capital. b. Decrease labor while increasing capital. c. Keep the current amounts of capital and labor just as they are. d. None of the above.
1
Given the following bids to buy and to sell a used book.
Bids to buy: $16. $16 . $18 . $18 . $18 . $20 . $22 $22 . $23 . $24
Bids to sell $18 . $18 . $18 . $22 . $23 . $23 . $23 . $23 . $24 $24
Which argument makes the most sense and why?
A) set price equal to $22 to maximize sales
B) set price at $16, so that more people will buy the product
C) set price at $24 so that more people will sell the product
D) set price at $18 because three people will buy and 3 people will sell
And describe a real life example for what happens to quantity demanded of your product if
A) the price of a complement rises
B) the price of a substitute rises
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