Connect Access Card for Microeconomics
21st Edition
ISBN: 9781259915734
Author: Campbell McConnell, Stanley Brue, Sean Flynn
Publisher: McGraw-Hill Education
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Question
Chapter 25, Problem 2P
Sub part (a):
To determine
Cost per mug and labor cost per mug.
Sub part (b):
To determine
Wage difference per hour between the country.
Sub part (c):
To determine
Wage difference per unit between the country.
Sub part (d):
To determine
Relationship between higher labor cost per hour and higher labor cost per unit.
Sub part (e):
To determine
Migration of unskilled labor.
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A firm can use three different production technologies, with capital and labor requirements at each level of output as follows:
Technology 1
Technology 2
Technology 3
Daily
Output
100
150
200
250
K
6
6
7
8
L
10
13
14
16
K
7
789
L
8
10
11
13
K
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8
9
10
L
7
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9
11
Suppose the firm is operating in a high-wage country, where capital cost is $110 per unit per day and labor cost is $90 per worker per day.
For each level of output, which technology is cheapest?
At 100 units of output,
is the least expensive.
A firm can use three different production technologies, with capital and labour requirements at each level of output as follows:
Technology 1
Technology 2
Technology 3
Daily Output
K
L
K
L
K
L
100
3
7
4
5
5
4
150
3
10
4
7
5
5
200
4
11
5
8
6
6
250
5
13
6
10
7
8
a. Suppose the firm is operating in a high-wage country, where capital cost is $100 per unit per day and labour cost is $80 per worker per day. For each level of output, which technology is the cheapest?
Now suppose the firm is operating in a low-wage country, where capital cost is $100 per unit per day but labour cost is only $40 per unit per day. For each level of output, which technology is the cheapest?
Suppose the firm moves from a high-wage to a low-wage country but its level of output remains constant at 200 units per day. How will its total employment change?
A Korean BBQ restaurant has four workers for washing jobs: Dane, June, Park, and Pola. Each works eight hours a day and can produce two washing services: washing rice bowls and washing grill racks. . In an hour, Dane can either wash 100 rice bowls or wash 20 grill racks; June can either wash 130 rice bowls or wash 50 grill racks; Park can either wash 150 rice bowls or wash 15 grill racks; and Pola can either wash 100 rice bowls or wash 25 grill racks.
Graph the production possibilities frontier over one day for this restaurant. In the graph, you must identify the points where transfer of a worker from one job to another starts to take place, by showing the coordinates of the points. You must take into account the fact that every worker works eight hours a day.
Please show me how to graph in excel
Chapter 25 Solutions
Connect Access Card for Microeconomics
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