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- This figure below shows the labor market for automobile workers. The curve labeled S is the labor supply curve, and the curves labeled D1 and D2 are the labor demand curves. On the horizontal axis, L represents the quantity of labor in the market. S Refer to Figure above. What is measured along the vertical axis on the graph? Select one: a. time spent by workers producing automobiles b. the price of automobiles c. the wage paid to automobile workers d. the quantity of automobiles produced6A. Define efficiency wage theory. 6B. Construct a labor market with efficiency wages; beneath the market explain what the equilibrium wage represents. (Please draw the labor market!) 6C. Set out the cost function for a firm. 6D. Set out the profit function for a firm. 6E. Explain how an efficiency wage increases profitsConsider Blewitt's Farm, a small blueberry grower relative to the size of the market whose production has no impact on wages and prices. The following table presents Blewitt's production schedule for blueberries: Labor Output (Number of workers) (Pounds of blueberries) 0 WAGE (Dollars per worker) 300 270 240 210 Suppose that the market wage for blueberry pickers is $200 per worker per day, and the price of blueberries is $13 per pound. 180 On the following graph, use the blue points (circle symbol) to plot Blewitt's labor demand curve when the output price is $13 per pound. Note: Remember to plot each point between the two integers. For example, when the number of workers increases from 0 to 1, the value of the marginal product of for the first worker should be plotted with a horizontal coordinate of 0.5, the value halfway between 0 and 1. Line segments will automatically connect the points. 150 120 60 1 30 2 3 4 0 5 0 20 38 54 68 80 O Demand P = $13 Demand P = $15 (?)
- 1] The scale effect of an increase in the wage a) only impacts firm decisions in the short run b) will cause the firm to reduce use of both capital and labor c) affects the firms demand for labor, but not its demand for capital d) refers to the firms increase in demand for now relatively cheap capitalAfter which administrative assistant do diminishing marginal returns begin for Jose's Tax Office? Explain using numbers. (b) Assume Jose's Tax Office sells its tax advisory services in a perfectly competitive market at a unit price of $4. Calculate the marginal revenue product of the fifth administrative assistant. Show your work. (c) Jose's Tax Office hires administrative assistants in a perfectly competitive labor market for administrative assistants at a wage rate of $90 per hour, and the market price of services remains $4. How many administrative assistants will Jose's Tax Office hire to maximize its profit? Explain using marginal analysis (d) Assume administrative assistants and office software are substitutes in providing tax advisory services by all tax firms in the market. If office software, a fixed input, becomes more expensive and Jose's Tax Office provides the same quantity of tax advisory services, will each of the following increase, decrease, or stay the same? (i) The…(c) Let us now turn to the labor market for grocery store workers in Little town. Recently one of the last two grocery stores in Little town closed leaving only one employer for grocery store workers in this area. This labor market is not very competitive. What type of market structure is this? (d) Draw a typical supply curve (i.e. average expenditure), marginal expenditure, and demand for the grocery store in Little Town. Label the equilibrium wage and number of grocery store workers. (e) Suppose that some time has passed and the population has grown in Little Town and there are now many grocery stores. Now suppose that the grocery store workers unionize. Draw a graph to depict the equilibrium wage and number of workers in this new market.
- Paducah Slugger Company makes baseball bats out of lumber supplied to it by Acme Sporting Goods, which pays Paducah $10 for each finished bat. Paducah's only factors of production are lathe operators and a small building with a lathe. The number of bats per day it produces depends on the number of employee-hours per day, as shown in the table below. a. The wage is $15 per hour and Paducah’s daily fixed cost for the lathe and building is $50. Instructions: Complete the table below. If you are entering any negative numbers be sure to include a negative sign (−) in front of those numbers. Express marginal cost values rounded to the nearest penny (two decimal places). Q (bats per day) Number of employee-hours per day Total revenue($ per day) Total labor cost($ per day) Total cost($ per day) Profit($ per day) Marginal costper bat 0 0 — 5 1 10 2 15 4 20 7 25 11 30 16 35 22 What is the…Demand for Resources A small manufacturing company has the following daily relationship between labor and output: Units of Total Labor Product 1 2 21 3 35 52 61 65 61 7 If the firm sells into a perfectly competitive market and the equilibrium price is $3.25 per unit, compute the following: Marginal Units of Marginal Product Revenue Labor Product 1 2 3 5 7 How many workers will the firm hire is the market wage rate (includining benefits) is $30.00? Wł 3 How many workers will the firm hire is the market wage rate(includining benefits) is $20.00? 4 If the equilibrium price per unit of output dencreases, what would you expect to happen to the number of workers hired? If the firm sells in a imperfectly competitive market such that price per unit starts at $4.50 per ur declines by $0.10 per unit as more as sold, what do you think would happen to the number of labor units hired at $30.00 per unit? 5 2.QUESTION 7 Which of the following will result in a leftward shift of the market demand curve for labor (ceteris paribus)? a. an increase in labor productivity b.a decrease in the firm's product price Oc an increase in demand for the firm's product Od an increase in the wage rate
- Question 10 The equilibrium wage in a local labor market is $10 per hour. If a minimum wage of $15 per hour is imposed, which of the following will occur? O There will be a decrease in the quantity of labor supplied by households. O There will be an increase in the quantity of labor demanded by firms. O There will be an increase in unemployment. O All of the above will occur.Wage Rate D₁ D₂ Quantity of Labor Refer to the above graph. What will shift D₁ to D₂? O An increase in the price of a substitute input (if the output effect is greater than the substitution effect) O A decrease in the price of a substitute input (if the substitution effect is greater than the output effect) O A decrease in the price of a substitute input (if the output effect is greater than the substitution effect) An increase in the price of a complementary resourceEconomics: Labor Economics Question: 1 If unskilled labor and robotics are substitutes in production a decrease in the price of robotics is predicted to a. decrease the demand for unskilled labor if the scale effect outweighs the substitution effect. b. decrease the demand for unskilled labor if the substitution effect outweighs the scale effect. c. unambiguously increase the demand for unskilled labor. d. unambiguously decrease the demand for unskilled labor. Question: 2 Assuming capital is fixed in the short run and variable in the long run what would likely happen to wages in the short and long run following a wave of immigration? a. a large decrease in the short run, followed by a smaller decrease in the long run b. a small decrease in the short run followed by a larger decrease in the long run c. an increase in the short run followed by a large decrease in the long run d. a decrease in the short run followed by an increase in the long run Question: 3 Which of the following…