1. Carolyn owns a soda factory and hires workers in a competitive labor market to bottle the soda. Her company's weekly output of bottled soda varies with the number of workers hired, as shown in the following table. a. If each case sells for $10 more than the cost of materials and wages are $1000 per week, how many workers will be hired? b. Suppose a bottlers union now sets weekly wages at $1,500 and all the workers belong to the union. How many workers will be hired instead? c. If the price per case rises so that each one sells for $15,

1. Carolyn owns a soda factory and hires workers in a competitive labor market to bottle the soda. Her company's weekly output of bottled soda varies with the number of workers hired, as shown in the following table. a. If each case sells for $10 more than the cost of materials and wages are $1000 per week, how many workers will be hired? b. Suppose a bottlers union now sets weekly wages at $1,500 and all the workers belong to the union. How many workers will be hired instead? c. If the price per case rises so that each one sells for $15,

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Don't answer by pen paper
Complete the following labor demand table for a firm that is hiring labor competitively and selling its product in a competitive market. Instructions: Enter your answers as a whole number. Units of Labor Marginal Revenue Total Product Marginal Product Total Product Price Revenue Product $2 1 17 2 2 31 2 3 43 2 4 53 2 5 60 2 6 65 2 a. How many workers will the firm hire if the market wage rate is $27.95? worker(s) How many workers will the firm hire if the market wage rate is $19.95? worker(s) b. Show this firm's labor demand curve graphically. Instructions: Use the tool provided 'Demand' to plot the labor demand curve point by point (plot 6 points total). 35 Tools 30 Demand 25 20 15 (1, 16) 10 1 3 4 Quantity of labor demanded Wage rate
Use the table below. Marginal Total Total Marginal Product revenue Workers Produce Revesue per Product Price (5) product per (Output) hours ($) hour 2,50 25 25 2.50 63 62.50 36 11 2.50 90 27.50 45 2.50 113 22.50 50 2.50 125 12.50 55 is 2.50 138 12.50 How many workers would the firm hire if it were required to pay a wage of $25 per hour? O 2 3. Os
how do I explain and graph question 9?
Complete the following labor supply table for a firm hiring labor competitively: Marginal Resource Wage Rate Marginal Revenue Product Units of Labor Total Labor Cost (Labor) Cost $14 - - 1 14 $38 14 28 3 14 24 4 14 20 14 14 14 10 2.
Suppose that a car factory initially hires 1,600 workers at $20 per hour and that each worker works 40 hours per week. Then the factory unionizes, and the new union demands that wages be raised by 25 percent. The firm accedes to that request in collective bargaining negotiations but then decides to cut the factory’s labor force by 30 percent due to the higher labor costs.
RATE 4. Excess supply with union wages Consider the housing construction industry. Assume that the industry is perfectly competitive in both input and output markets. Suppose that, through collective bargaining, a labor union negotiates an industry-wide wage for various kinds of labor (electricians, plumbers, and so on). In particular, it succeeds in negotiating a wage increase for carpenters from $30 to $40 per hour. The following graph shows the labor demand of an individual firm. On the following graph, show what happens at the firm level as a result of the union negotiations. 10 20 50 24 72 QUANTITY OF LABOR Demand 120 Demand Supply Supply Now consider the effects of the wage change on the entire industry. Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly. WAGE RATE (Dollars…
You are a labor economist trying to evaluate whether the labor market for computer scientists is competitive or monopsonistic. Based on previous research, you know that the production function for computers depends only on labor input: Y = -0.5L^2 + 10L; where Y is the output of computers and L is the quantity of labor used. The price of a computer is p = 2. You also know that the labor supply, as a function of the wage, for computer scientists is the following, where w is the wage per unit of labor: L = -10 + w. a. Find the equilibrium wages and employment (wc; Lc) that would prevail if the market for computer scientists were competitive. [Remember that a competitive firm takes the wage as given : that is, it assumes that the quantity of workers that it hires has no effect on the price of the next worker. (Of course, the equilibrium wage must equate demand and supply)].
Ford Motors 2010-2019 Explain how the company uses high-skilled and low-skilled labor? Most companies will use some mix of both, but most companies will rely more heavily on one or the other.
Describe the construction of the firm’s demand curve for labour in the short run. Describe the relationship between the firm's demand curve for labour in the short-run and the market demand curve for labour in the short-run. In particular, is one curve likely to be more or less elastic than the other? Can you please specify why the curve is more elastic than the other. And include diagram
Please answer with work on how to complete this problem.
Firms that are confronted with union demands for higher wages may choose production methods that involve and less , resulting in increased labor productivity. more Select the correct answer below: labor; resources O physical capital; labor O raw materials; physical capital labor; physical capital