1. The demand for laborConsider Live Happley Fields, a small player in the strawberry business whose production has no individual effect on wages and prices. Live Happley'sproduction schedule for strawberries is given in the following table:Labor InputTotal Output(Number of workers) (Pounds of strawberries)0WAGE RATE (Dollars per worker)300Suppose that the market wage for strawberry pickers is $170 per worker per day, and the price of strawberries is $12 per pound.270On the following graph, use the blue points (circle symbol) to plot Live Happley's labor demand curve when the output price is $12 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 marginal revenueproduct of the first worker should be plotted with a horizontal coordinate of 0.5, the value halfway between 0 and 1. Line segments will automaticallyconnect the points.2402101801501209060301023450018344860701234QUANTITY OF LABOR (Number of workers)5Demand P = $12Demand P = $16(? At the given wage and price level, Live Happley should hireSuppose that the price of strawberries increases to $16 per pound, but the wage rate remains at $170.On the previous graph, use the purple points (diamond symbol) to plot Live Happley's labor demand curve when the output price is $16 per pound.Now Live Happley should hirewhen the output price is $16 per pound.Assuming that all strawberry-producing firms have similar production schedules, an increase in the price of strawberries will cause thestrawberry pickers toSuppose that wages increase to $200 due to an increased demand for workers in this market. Assuming that the price of strawberries remains at $16per pound, Live Happley will now hire

Labor Input (Number of workers)Total Output (Pounds of strawberries)00118234348460570

At the given wage and price level, Live Happley should hire Suppose that the price of strawberries increases to $16 per pound, but the wage rate remains at $170. On the previous graph, use the purple points (diamond symbol) to plot Live Happley's labor demand curve when the output price is $16 per pound. Now Live Happley should hire when the output price is $16 per pound. Assuming that all strawberry-producing firms have similar production schedules, an increase in the price of strawberries will cause the strawberry pickers to Suppose that wages increase to $200 due to an increased demand for workers in this market. Assuming that the price of strawberries remains at $16 per pound, Live Happley will now hire

At the given wage and price level, Live Happley should hire Suppose that the price of strawberries increases to $16 per pound, but the wage rate remains at $170. On the previous graph, use the purple points (diamond symbol) to plot Live Happley's labor demand curve when the output price is $16 per pound. Now Live Happley should hire when the output price is $16 per pound. Assuming that all strawberry-producing firms have similar production schedules, an increase in the price of strawberries will cause the strawberry pickers to Suppose that wages increase to $200 due to an increased demand for workers in this market. Assuming that the price of strawberries remains at $16 per pound, Live Happley will now hire

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

Imagine you've been hired as the manager of a firm producing a certain product X. The following schedule shows the total production per week of product X Additionally, assume each unit of product X sells for $10 per unit, workers can be hired in a competitive labor market for $500 per week, and the rental price of a unit of capital is $R per week Capital (K) Quantity (Q) Labor (L) 0 5 0 1 5 40 2 5 105 3 5 170 4 5 245 5 5 325 6 5 410 7 5 500 8 5 595 9 5 695 10 5 760 11 5 810 12 5 855 13 5 890 14 5 915 15 5 930 a. How many workers should be hired? To answer this question, append to the above table three new columns similar to columns (3), (4) and (5) of Table 5-2 in your textbook. Explain your final answer!
1. The market price for tomatoes is $2/pound. Lynn is too small to influence the price of tomatoes. Her tomato (short-run) production function is given by q= L3 where L measures hours of labor and q measures pounds of tómatoes. (a) demand curve for labor. Lynn hires labor from a competitive labor market. Find her short run (b) elastic than her short-run demand for labor? Explain your answer. Would you expect Lynn's long-run demand for labor to be more or less
Marginal Product |of Labor (haircuts) Workers 1 4 2 3 4 1 0.5 The above information is the production function for a barber shop that operates in perfectly competitive markets. The wage rate is $15 and the price of a haircut is $8. How many workers should the shop hire to maximize profit? 3 2 4 O 1
The average product of labour is the output per employee often called labour productivity. Use the information in table 17.1 to answer the question below. Table 17.1 c) OD Output units d) 1 000 2 500 6 000 7.000 8 000 As the number of employees increases from 10 to 50 the average product of labour: a) Is constant b) Falls then rises Rises Falls Number of employees 10 20 30 40 50
Show full answers and steps to part d) e) & f)
7. The production function for a price-taking firm is given by q = 2.5k0.4L0.4. What are the demand functions for labor 1(v,w.p) and capital k(v,w,p)? [Show your work] 8. The production function for a price-taking firm is given by q = 2.5k0.4L0.4. What is the supply function q(v,w,p)? [Show your work]
Assume a firm is trying to produce q0 units of output at the lowest total cost. The wage decreases, rotating the isocost line as shown in the below graph. Make the necessary changes to the graph to show the input combination that will now produce q0 at the lowest total cost. Make sure you show the new levels of labor and capital.
provide me with exact calculation and answers plz! will leave thumbs up if helps
A perfectly competitive, profit-maximizing firm gets $50 per unit it sells and pays its workers $10 per hour. When this firm hires an additional worker at this production point, we know that unit of labor provides units of output. (Enter only a number and decimal point as needed in the blank.)
Use the table to answer the question that follows. Quantity of Labor MP of Labor Quantity of Capital MP of Capital 1 30 1 50 2 25 2 40 3 20 3 35 4 15 4 15 5 10 5 5 What combination of labor and capital would satisfy the input hiring rule that minimizes the cost of production, if the price of labor is $5 and the price of capital is $10? A-1 unit of labor; 3 units of capital. B-2 units of labor; 2 units of capital C-3 units of labor; 2 units of capital. D-4 units of labor; 4 units of capital E-5 units of labor; 1 unit of capital
Refer to the given data in the table below. Assume that labor is the only variable input. Please calculate the marginal product of labor for each level of labor input and and graph it using the diagram below. # Workers (L) 1 2 3 4 5 Total Output 7 12 15 16 16 Provide your answer below: 20 15 10 5- -2 -1 1 2 3 4 7 9 10 Labor -5- Marginal Product
Explain how the marginal cost of labor (MCL) curves differ between a firm in a perfectly competitive input market and a firm in a non-perfectly competitive input market, and illustrate on a graph.