1. The nation of Ectenia has 20 competitive apple orchards, all of which sell apples at the world price of $2 per apple. The following equations describe the production function and the marginal product of labor in each orchard: < Q = 100L-L2 MPL = 100 - 2L,< where Q is the number of apples produced in a day, L is the number of workers, and MPL is the marginal product of labor. (a) What is each orchard's labor demand as a function of the daily wage W? What is the market's labor demand?< (b) Ectenia has 200 workers who supply their labor inelastically. Solve for the wage W. How many workers does each orchard hire? How much profit does each orchard owner make?< (c) Calculate what happens to the income of workers and orchard owners if the world price doubles to $4 per apple.< (d) Now suppose the price is back at $2 per apple, but a hurricane destroys half the orchards. Calculate how the hurricane affects the income of each worker and of each remaining orchard owner. What

1. The nation of Ectenia has 20 competitive apple orchards, all of which sell apples at the world price of $2 per apple. The following equations describe the production function and the marginal product of labor in each orchard: < Q = 100L-L2 MPL = 100 - 2L,< where Q is the number of apples produced in a day, L is the number of workers, and MPL is the marginal product of labor. (a) What is each orchard's labor demand as a function of the daily wage W? What is the market's labor demand?< (b) Ectenia has 200 workers who supply their labor inelastically. Solve for the wage W. How many workers does each orchard hire? How much profit does each orchard owner make?< (c) Calculate what happens to the income of workers and orchard owners if the world price doubles to $4 per apple.< (d) Now suppose the price is back at $2 per apple, but a hurricane destroys half the orchards. Calculate how the hurricane affects the income of each worker and of each remaining orchard owner. What

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: Buying and selling textbooks are two separate decisions made at the margin. Textbooks create value…

A: Consumer surplus refers to the difference between the actual amount paid by the consumer and the…

Q: A model of saintlihood and altruism, when Mother Teresa accepted the Nobel Prize for Peace in…

A: The "Blessed Teresa of Calcutta" was awarded the Nobel Peace Prize in 1979 for her efforts in the…

Q: Being able to make an item at a lower cost than anyone else can make it is an advantage? True or…

A: To make any item at lower cost is always a plus point in the market.

Q: Suppose the government is trying to determine how to deal with pesticide contamination of its water…

A: Government has two alternatives to deal with contamination -# Municipal Treatment Plant : Initial…

Q: How Many decisions in business and economics require quantitative estimates? why ?

A: Almost every business and economic decision requires quantitative research. Data is very important…

Q: how do you deal with opportunity cost

A: Opportunity cost is the cost or value of the next best alternative which an individual foregoes to…

Q: Do you see the rise of consumer power through evolving changes in technology? If so, how?

A: Technology is all that make things quicker, easier or cheaper. The rise in the technology leads to a…

Q: Define econometric in 200 words!

A: Econometrics refers to the use of statistical techniques to economic data in order to provide…

Q: Why a cashless society are opportunities over risks? How does it improve people's daily life?

A: A cashless society is an economic situation in which financial transactions are carried out without…

Q: Describe how specific types of task-oriented behaviors and relationship-oriented behaviors can be…

A: Consider taking on more leadership roles as your career progresses. Regardless of your position, you…

Q: How do you evaluate your opportunity cost in terms of the alternative decisions that you have to…

A: Oportunity cost is the following best elective which we have renounced because of purpose of present…

Q: How do design, creativity, and innovation connect in our current environment?

A: Economic activities are incrasing in all over countries eithe developing or developed economy.…

Q: Is there a pattern in opportunity cost changes?

A: Opportunity cost is a micro economics concept refer to the lost of the potential benefit for an…

Q: could you show the work for solving (1) and (2) in part A at the end?

Q: The opportunity cost of any decision that you make involves giving up something. I would like you to…

A: The opportunity cost is the cost of the next best alternative that is being foregone by the…

Q: What is the solution to question 6? I really need help with that one.

A: The amount of gas the buyers would be willing to purchase would drop if it turned out that 50% of…

Q: Give three reasons why the aggregate demand curve slopes downward.

A: Answer - Reasons for AD curve to be sloping downward:- 1. Wealth effect:- According to this money…

Q: Based on what you have learned so far, what is the biggest problem an economy faces and how can we…

A: In the short run, all resources are fixed but labor is a variable input and in the long run, all…

Q: The company that you manage has invested $5 million in developing a new product, but the development…

A: Sunk Cost: It refers to the cost that has already been incurred and can’t be recovered back and…

Q: Elaborate on your opportunity costs, if you decide to stop studying now and start working.

A: Opportunity cost is the next best alternative foregone.

Question

Solve it all on paper!

1. The nation of Ectenia has 20 competitive apple orchards, all of which sell apples at the world price of $2
per apple. The following equations describe the production function and the marginal product of labor in
each orchard: <
Q = 100L - L2
MPL = 100 - 2L,<
where Q is the number of apples produced in a day, L is the number of workers, and MPL is the marginal product
of labor.<
(a) What is each orchard's labor demand as a function of the daily wage W? What is the market's labor
demand?<
(b) Ectenia has 200 workers who supply their labor inelastically. Solve for the wage W. How many
workers does each orchard hire? How much profit does each orchard owner make?<
(c) Calculate what happens to the income of workers and orchard owners if the world price doubles to $4
per apple.<
(d) Now suppose the price is back at $2 per apple, but a hurricane destroys half the orchards. Calculate
how the hurricane affects the income of each worker and of each remaining orchard owner. What
happens to the income of Ectenia as a whole?<

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Introduction

VIEW

Step 2: Final Answer

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Follow-up Questions

Read through expert solutions to related follow-up questions below.

Follow-up Question

Solve Part C on paper

Solution

by Bartleby Expert

SEE SOLUTION

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Trade You are thinking about buying a house. You find one you like that costs $300,000. You learn that your bank will give you a mortgage for $240,000 and that you would have to use all of your savings to make the down payment of $60,000. You calculate that the mortgage payments, property taxes, insurance, maintenance, and utilities would total $1,440 per month. Which of the following is true regarding your calculation of the cost of owning the house? OA. It should include your monthly income, since you must know the source of the money when trying to calculate costs. B. It should not include maintenance, since homeowners often use their own time to fix things around the house instead of calling a professional. OC. It should include the opportunity cost of the money used to make the down payment. This money could be earning interest in a bank. OD. It should not include property taxes, since that is money that goes directly to the government and is no longer in the market. Given the…
What is your opportunity cost for taking the time to study for a test?
Trying to figure out?
Give two examples of opportunity one can face today
What are the goals of economic engineering?
Have new technologies helped you in any significant way, and if so, how? On balance, do you see new technologies as a benefit or a threat to society? Explai
Why a cashless society are risks over opportunities? How does it destroy people's daily life?
How can organizational context influence the decisions made by organizational members?
Q. 1 You are the mayor of a small town with 2000 residents. The head of your economic development agency recently conducted a survey in which the 2000 residents said that a public concert in the centre of town would be worth $20 to cach of them. Since it costs only $5000 to hold the concert, you organized and held the concert, which everyone in town enjoyed. But when you asked for donations to pay for the concert, you only collected $30 in total. What do you know? a. The survey certainly overstated how much the concert was worth to each resident. b. From the standpoint of total costs and benefits, the cost of the concert certainly exceceded the benefit. c. The concert was an example of the Tragedy of the Commons. d. Residents of the town were probably free riders.