An economy with competitive markets has 2 kinds of jobs, Routine & Skilled. There are 2 types of workers, Qualified & Unqualified. 60% of workers are Qualified while 40% are unqualified. In a Routine job, both types of workers produce 10 widgets. In a Skilled job, Qualified workers produce 100 widgets each, while Unqualified workers produce 0. Labor markets are competitive, so each worker is paid their marginal product, i.e. how much they produce, in widgets. Everyone looks great in an interview, so companies must hire without knowing the worker's type and must pay the first period's wage without knowing their actual output. However, Qualified workers can signal their qualification by receiving an education. For a Qualified worker, the cost of getting educated to level n is 0.5n2. For an Unqualified worker, it is n2. These costs are also measured in widgets. What is the maximum level of education that Qualified workers will obtain, in a separating

An economy with competitive markets has 2 kinds of jobs, Routine & Skilled. There are 2 types of workers, Qualified & Unqualified. 60% of workers are Qualified while 40% are unqualified. In a Routine job, both types of workers produce 10 widgets. In a Skilled job, Qualified workers produce 100 widgets each, while Unqualified workers produce 0. Labor markets are competitive, so each worker is paid their marginal product, i.e. how much they produce, in widgets. Everyone looks great in an interview, so companies must hire without knowing the worker's type and must pay the first period's wage without knowing their actual output. However, Qualified workers can signal their qualification by receiving an education. For a Qualified worker, the cost of getting educated to level n is 0.5n2. For an Unqualified worker, it is n2. These costs are also measured in widgets. What is the maximum level of education that Qualified workers will obtain, in a separating

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

Labor Output 1 10 18 3 25 4 30 33 6. 34 7 35 If the workers are paid $18 per hour, the price of the product is $20, and the fixed cost of the business is $100 per hour, how many workers should the business employ? Group of answer choices three six four seven five LO
Fig. A 250 $ 200 Fig. C 150 100 50 0 250 200 150 0 12 100 50 0 I 0 VMP=MRP LS-MFC 10 20 MRP VMP LS=MFC 10 20 30 40 URE 30 50 40 50 L Fig. B Fig. D 250 200 150 100 50 0 250 200 150 100 50 0 $ 0 $ 45. Assuming the labor market is perfectly competitive, which of the following statements are TRUE? O(a) The VMP is the demand for labor curve for a firm that sells its product in a perfectly competitive market (b) The MRP is the demand for labor curve for a firm that has monopoly power when it sells its product. (c) Both (a) and (b) are correct O(d) None of the above 0 10 VMP=MRP MRP 10 20 VMP 20 30 40 30 40 LS 50 50 LS -MFC ||||| L MFC
In the 1970s Sweden adopted several new labour market policies affecting layoffs. Three were notable: (1) Plants that provided in-plant training instead of laying of workers in a recession received subsidies. (2) All workers had to be given at least one month's notice before being laid off, and the required time in he average plant was two to three months. (3) Laid-off workers had to be given first option on new jobs with the former employer.. What probable effects would these policies have on unemployment? government
The table below shows levels of employment (Labor), the marginal product at each of those levels, and the price at which the firm can sell output in a perfectly competitive market. Labor Marginal Product of Labor Price of the Product Value of the Marginal Product 1 7 $3 6 $3 3 $3 4 4 $3 3 $3 a) Complete the table finding the Value of the Marginal Product (show your work!). b) If the wage rate is $15, what is the firm's profit maximizing level of employment? JUSTIFY your answer! 2.
What is the output of the 8th worker? Group of answer choices: 0 -10 10 5
An economy with competitive markets has 2 kinds of jobs, Routine & Skilled. There are 2 types of workers, Qualified & Unqualified. 60% of workers are Qualified while 40% are unqualified. In a Routine job, both types of workers produce 10 widgets. In a Skilled job, Qualified workers produce 100 widgets each, while Unqualified workers produce O. Labor markets are competitive, so each worker is paid their marginal product, i.e. how much they produce, in widgets. Everyone looks great in an interview, so companies must hire without knowing the worker's type and must pay the first period's wage without knowing their actual output. However, Qualified workers can signal their qualification by receiving an education. For a Qualified worker, the cost of getting educated to level n is 0.5n2. For an Unqualified worker, it is n². These costs are also measured in widgets. What is the maximum level of education that Qualified workers will obtain, in a separating equilibrium? 13.5 12 13 10
Becker argued that discrimination is economically detrimental to all parties and will be eliminated by the market. discrimination is only economically detrimental to the employee but will never be completely eliminated by the market. discrimination is economically detrimental to all parties but will never be completely eliminated by the market. O discrimination is only economically detrimental to the employee and will be eliminated by the market.
Consider the Labor Economics Question. This will provide insight into the idea of the optimal number of workers and the value of the marginal product of labor. If wages in the restaurant is $16.80 per hour and the price of a Hamburger is $8.30 and the production function for the workers is: Q = 11L – 0.25L2 How many workers should Your Restaurant employ during the lunch hour to maximize profits? 1 Point (note—the value of the marginal product of labor and the marginal revenue product are the same) We maximize profits which are total revenues less total costs:
A single firm is the only employer in a labour market. The marginal revenue product, labour supply, and marginal factor cost curves that it faces are displayed in the diagram below. Use this information to answer the following questions. 1. How many units of labour will this firm employ in order to maximize it's economic profits? 2. what hourly wage rate will this firm pay it's workers? 3. What is the total amount of wage payments that this firm will make to its workers each hour? per Hour ($) Wage Rate, Marginal Factor Cost, Revenue Product and Marginal 28 20 13 10 0 1 3 1 C S X MFC MRP 1000 1600 Quantity of Labour per Time Period
How would I analyze how the equilibrium wage and number of working hours will change when a company has a great demand for workers (i.e. grocery stores now) yet some current workers don't want to work as many hours? How would I explain the three cases that would depend on the relative size of change in labor demand and labor supply? For example. Case 1. Change in supply(∆LS)| = |Change in Demand(∆LD )| . Case 2: |∆LS| > |∆LD| . Case 3: |∆LS| < |∆LD| I'm trying to understand how the equilibrium wage and number of working hours will change under these different scenarios. Thanks