Carolyn owns a soda factory and hires workers in a competitive labor market to bottle soda. Her company's weekly output a bottle soda varies with the number of workers hired, as shown in the following table. Complete the following table before answering: Number Of Workers Cases Per Week Total Revenue $ per week VMP $ per worker 0 0 1 200 2 360 3 480 4 560 5 600 A. If each case sells for $10 more than the cost of the materials used in producing it in the competitive market wage is $1000 per week how many workers should Carolyn hire? How many cases will be produced per week? _________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ B. Suppose the soda bottles union now sets a weekly minimum acceptable wage of $1500 per week. All the workers Carol hires belong to the union. How does the minimum wage affect Carol's decision about how many workers the hire? _________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ C. If the wages again $1000 per week but the price of soda rises to $15 per case, how many workers will Carol hire now? Complete the table before answering. Number Of Workers Cases Per Week Total Revenue $ per week VMP $ per worker 0 0 1 200 2 360 3 480 4 560 5 600 _________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
Carolyn owns a soda factory and hires workers in a competitive labor market to bottle soda. Her company's weekly output a bottle soda varies with the number of workers hired, as shown in the following table. Complete the following table before answering:
|
Number Of Workers |
Cases Per Week |
Total Revenue $ per week |
VMP $ per worker |
|
0 |
0 |
|
|
|
1 |
200 |
|
|
|
2 |
360 |
|
|
|
3 |
480 |
|
|
|
4 |
560 |
|
|
|
5 |
600 |
|
|
A. If each case sells for $10 more than the cost of the materials used in producing it in the competitive market wage is $1000 per week how many workers should Carolyn hire? How many cases will be produced per week?
_________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
B. Suppose the soda bottles union now sets a weekly minimum acceptable wage of $1500 per week. All the workers Carol hires belong to the union. How does the minimum wage affect Carol's decision about how many workers the hire?
_________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
C. If the wages again $1000 per week but the
|
Number Of Workers |
Cases Per Week |
Total Revenue $ per week |
VMP $ per worker |
|
0 |
0 |
|
|
|
1 |
200 |
|
|
|
2 |
360 |
|
|
|
3 |
480 |
|
|
|
4 |
560 |
|
|
|
5 |
600 |
|
|
_________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
Trending now
This is a popular solution!
Step by step
Solved in 8 steps with 4 images
