3.2 An increase in the amount of capital in the economy will shift the demand for labor curve to the................ (right/left), leading to higher real wages and employment.
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A: Production function :
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A: Labor Output MPL 0 0 - 1 20 20 2 39 19 3 57 18 4 72 15 5 84 12
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3.2 An increase in the amount of capital in the economy will shift the
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- 4) If the marginal product of capital MPK > r, where r is the market rental rate for capital, the firm A. Should hire more capital until MPK = r. B. Should hire more labor until MPK = r. C. Should hire more labor until MPK = 0. D. Should fire more capital until MPK = r. %3D 5) Figure 1 below shows the dynamics of per-capita GDP for six countries in ratio scale from 1870 to 2010. From the Figure we learn that the level of per capita GDP A. Has almost doubled for the US from 1880 to 2020 B. Was higher in the U.S. compared to the UK in 1880 C. Was higher in China compared to Argentina in 2000. D. Increased by approximately 5 times in Japan from 1950 to 1970. Answer 64,000 U.S. 32,000 16,000 Argentina 8,000 U.K. 4,000 Japan 2,000 S. Africa China 1,000 1880 1900 1920 1940 1960 1980 2000 2020Can you put a solution to this? Instruction: (see other instructions below, for the submission of answer sheet) A. Complete the Column for MRS. Show your solution for each answer, Number each solution that corresponds to each unknown MRS. B. Graph the Labor-Capital function, making sure that Labor units are in the horizontal axis MRS = change in K/ change in L change in K = final K - initial K change in L = final L - initial L MRS = 26-30 /2-1 MRS = -4/1 MRS = - 4 Units of Labor Capital MRS 1 30 0 2 26 -4 3 22.5 (1) 4 19.5 (2) 5 17 (3) 6 15 (4) 7 13.5 (5) 8 12.5 (6) 9 12 (7) 10 12 (8)Consider the labor–leisure budget constraint curve on the graph. This curve shows trade‑offs between income and leisure that must be made over the course of one week. Assume there are no artificial barriers to limits on hours worked and that the wage is $25 per hour. Determine the vertical and horizontal intercepts. vertical intercept: $ horizontal intercept: h
- in an economy with production function Y = 1.5 × K^0.3L^0.7, K = 343, and L = 512. If factor markets are in equilibrium, then the rental price of capital is (approximately) ________, and the real wage is (approximately) ________. A) 0.5; 0.8 B) 7; 8 C) 0.9; 1.35 D) 1.4; 0.4 E) 0.6; 0.9To say that the demand for labor is a derived demand means that the demand for labor depends upon the demand for the product produced by labor O the supply of labor rises when the demand for labor falls changes in the demand for labor lead to changes in the demand for the product produced by labor the quantity of labor is derived by the real wage rateQ1). Suppose the labor market is initially at its equilibrium, i.e., the labor supplied equals the labor demanded. Now suppose IBM develops a new computer chip that makes computer incredibly faster. Explain and show graphically how the arrival of a new, more productive technology affects the labor market. Draw the full graph and provide a detailed explanation of the effect. Label the axes/curves, explain why either the aggregate labor demand curve or the aggregate labor supply curve shifts and describe the economic mechanism that moves the economy from the old to the new equilibrium.
- 3. You are the owner of a large online retail company selling second-hand textbooks to students studying in the UK. You currently employ 17 unskilled workers to dispatch the books who are paid the National Living Wage of £8.91 per hour. You also employ 6 semi- skilled workers to check payment and perform other routine administrative duties. These workers are paid £10.50 per hour. A friend of yours, who is an economist at Lancaster University, informs you that wages are predicted to rise the UK and that, as a result of this, he predicts that the National Living Wage will rise to £9.65 per hour in April 2022. Discuss the implications of this legislative change on your company's operations and, in particular, the implications for your optimal mix of inputs and long-run investment decisions.dont copy from chegg pleaseConsider a company operating in a competitive market. The company sells units of output and receives a price of $30 per unit, and pays a daily market wage of $285 to each worker it employs. In the following table, complete the column for the value of the marginal product of labor (VMPL) at each quantity of workers. Value of the Marginal Product of Labor Labor Output Marginal Product of Labor (Number of workers) (Units of output) (Units of output) (Dollars) WAGE (Dollars per worker) 500 450 On the following graph, use the blue points (circle symbol) to plot the firm's labor demand curve. Then, use the orange line (square symbols) to show the wage rate. (Note: If you cannot place the wage rate at the level you want, move the two end points individually.) 400 Hint: Remember to plot each point halfway between the two integers. For example, when the number of workers increases from 0 to 1, the value of the marginal product for the first worker should be plotted with a horizontal coordinate…
- In the short run, the owner of a firm should continue to hire additional units of labor until: a. the price of the product is equal to the wage rate divided by the marginal product of labor. b. the wage rate is equal to the price of the product multiplied by the marginal product of labor. c. the marginal product of labor is equal to the wage rate divided by the product price. d. Both a and c are correct. e. All of the above are correct.Full answer to question a and bProblem #3: Labor Unions (20 points) Sarah is thinking if she should join the labor union in their company. Her utility function is U (c, 1) = (cl)05, where c denotes consumption, and I denotes leisure. She has 16 hours each day to allocate between work and leisure. 1. Given her non-labor income is zero, how many hours will Sarah work at $7 wage/hour? In addition, how much consumption and leisure can she afford, and how much utility can she achieve from this? 2. If the labor unioh bargains for a $10.5 overtime pay rate for work hours beyond 8 hours, will Sarah benefit from this proposal? 3. If, instead, the labor union proposes an 8-hour workday, will Sarah benefit from it?