1. Write down the value of the marginal product of labor for the firms. 2. Find the equilibrium employment and the wage. 3. A group of workers moves from New York to Washington DC. These workers are perfect substitutes for Washington DC residents, and their labor supply curve is S NY (w) = 2 + αw where 0 < α < 1. Find the new total labor supply curve in Washington DC. 4. Find the new wage and Washington DC native employment. migrants? How do these depend on New York
1. Write down the value of the marginal product of labor for the firms. 2. Find the equilibrium employment and the wage. 3. A group of workers moves from New York to Washington DC. These workers are perfect substitutes for Washington DC residents, and their labor supply curve is S NY (w) = 2 + αw where 0 < α < 1. Find the new total labor supply curve in Washington DC. 4. Find the new wage and Washington DC native employment. migrants? How do these depend on New York
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Suppose the labor supply curve for native Washington DC residents is S DC (w) = 2w. There are many small firms in Washington DC. They collectively have a production function f (E) = 6E − E . 42
1. Write down the value of the marginal product of labor for the firms.
2. Find the equilibrium employment and the wage.
3. A group of workers moves from New York to Washington DC. These workers are perfect substitutes for Washington DC residents, and their labor supply curve is S NY (w) = 2 + αw where 0 < α < 1. Find the new total labor supply curve in Washington DC.
4. Find the new wage and Washington DC native employment.
migrants?
How do these depend on New York
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