11:16 Fri 10O Dec* 9 80%•..managebac-prod-china.s3.cn-north-1.amazonaws.com.cn APage 8 of 46AP Microeconomics9 of 46AP CollegeBoardTest BookletUnit 5 Problem Set - FRQ'sInclude correctly labeled diagrams, if useful or required, in explaining your answers. A correctly labeled diagrammust have all axes and curves clearly labeled and must show directional changes. If the question prompts you to"Calculate," you must show how you arrived at your final answer.Central Manufacturing Company is the only manufacturing facility in a small remote town, and Central ManufacturingCompany is the only employer of machinists in the area. The graph below shows the market for machinists with themarginal factor (resource) cost curve, the labor supply curve, and the marginal revenue product curve.120MarginalFactor CostSupply7563574536MarginalRevenue Product15210 300600800 Quantity ofMachinists105420 480150 240380560(a) If the wage rate is $63, state whether there will be a shortage or a surplus of machinists and calculate its size. Showyour work.(b) Identify the profit-maximizing number of machinists. Explain using the labeling on the graph.(c) Identify the profit-maximizing wage rate that Central Manufacturing Company will pay its machinists. Explain usingthe labeling on the graph.(d) If the marginal product of machinists increases, what will happen to the quantity of output produced by CentralManufacturing Company? Explain.(e) Assume instead that Central Manufacturing Company uses both labor and capital in producing widgets. The marginalproduct of the last unit of labor hired is 120 widgets per day and the marginal product of the last unit of capital rented isAP MicroeconomicsPage 9 of 46Wage Rate ($) 11:16 Fri 10 Dec* O 80%0..AA rod-china.s3.cn-north-1.amazonaws.com.cnUnit 5 MCC * Start PageEmily XuEmily Xumanagebac...Emily XuAP MicroeconomicsPage 19 of 4620 of 46AP CollegeBoardTest BookletUnit 5 Problem Set - FRQ'sNumber ofUnskilled Workers Quantity of RadiosProduced (per day)Hired1204536047075679780Assume that HZRad Company produces clock radios as shown in the short-run production function in the table above.HZRad can sell all the clock radios it produces at a market price of $20 each and can hire all the unskilled labor it needs ata wage of $90 per day per worker. Assume also that labor is the only variable input.a. Using the specific information above, draw a correctly labeled graph of HZRad's current supply curve forunskilled labor.b. What is HZRad's profit-maximizing output level? Explain.c. Suppose that HZRad is the first company to use a new technology that increases the productivity of its unskilledworkers.i. How will the new technology affect the quantity of unskilled labor HZRad hires? Explain.ii. How will the new technology affect the wage paid to HZRad's unskilled workers?17.Respond to all parts of the question.Please respond on separate paper, following directions from your teacher.

Disclaimer :- it is multiple type questions so we are supposed to solve only the first one. But the first question consists multipart then we are supposed to solve first three of first question only.

Business

Economics

Central Manufacturing Company is the only manufacturing facility in a small remote town, and Central Manufacturing Company is the only employer of machinists in the area. The graph below shows the market for machinists with the marginal factor (resource) cost curve, the labor supply curve, and the marginal revenue product curve. 120 Marginal Factor Cost Supply 75 63 57 45 36 Marginal Revenue Product 15 210 300 800 Quantity of Machinists 105 420 480 600 150 240 380 560 (a) If the wage rate is $63, state whether there will be a shortage or a surplus of machinists and calculate its size. Show your work. (b) Identify the profit-maximizing number of machinists. Explain using the labeling on the graph. (c) Identify the profit-maximizing wage rate that Central Manufacturing Company will pay its machinists. Explain using the labeling on the graph. Wage Rate ($)

Central Manufacturing Company is the only manufacturing facility in a small remote town, and Central Manufacturing Company is the only employer of machinists in the area. The graph below shows the market for machinists with the marginal factor (resource) cost curve, the labor supply curve, and the marginal revenue product curve. 120 Marginal Factor Cost Supply 75 63 57 45 36 Marginal Revenue Product 15 210 300 800 Quantity of Machinists 105 420 480 600 150 240 380 560 (a) If the wage rate is $63, state whether there will be a shortage or a surplus of machinists and calculate its size. Show your work. (b) Identify the profit-maximizing number of machinists. Explain using the labeling on the graph. (c) Identify the profit-maximizing wage rate that Central Manufacturing Company will pay its machinists. Explain using the labeling on the graph. Wage Rate ($)

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter2: Choice In A World Of Scarcity

Section: Chapter Questions

Problem 12RQ: Why is a production possibilities frontier typically drawn as a curve, rather than a straight line?

See similar textbooks

Related questions

Q: Geralt works for Stregobor as a witcher earning $87,000 a year. He decides to quit his job and…

A: Economic cost includes both implicit costs and explicit costs. Implicit costs are those costs which…

Q: A The table below shows the total product from different levels of labor. Suppose the hourly wage…

A: Variable costs refer to the costs of production that are dependent on the output of a firm, i.e.,…

Q: In the short run, a tool manufacturer has a fixed amount of capital. Labor is a variable input. The…

A: Total labor cost is the total cost of hiring laborers. Total labor cost is calculated as units of…

Q: Production data for Bob's Bicycle Factory are as follows: Wunber of Morkers Dikes assenbled per day…

A: Answer: Given, Cost other than wages = $100 Price of bike = $130 Share of wages in the price of bike…

Q: es frequently push back from the gate on time, but then wait 2 feet away from the gate until it is…

A: How consumers and organizations answer market signals like costs and monetary advantages.

Q: Suppose a campus restaurant increases the number of workers it hires from 3 workers per day to 11…

A: Given: Increase in the number of workers from 3 workers per day to 11 workers per day The total…

Q: Central Manufacturing Company is the only manufacturing facility in a small remote town, and Central…

A: In economics, a monopsony refers to a market structure where there is only one buyer for a good or…

Q: In the short run, a tool manufacturer has a fixed amount of capital. Labor is a variable input. The…

A: Marginal revenue product is the additional output produced from employing an additional unit of…

Q: Coldbox Corporation hires its workers in a perfectly competitive labor market and produces and sells…

A: Total product shows the total amount of goods produced by labors. Marginal productivity shows the…

Q: Consider the following table, which shows the total number of customers served per hour as the…

A: Marginal product is the addition to a total product that happens due to the employment of an…

Q: Units of Resource Total Product 24 1 2 42 3 54 4 5 64 72 & Exit The table shows a total-product…

A: The marginal revenue product is the marginal revenue created due to the addition of one unit of…

Q: L (workers) | Q (units) 1 60 2 110 3 150 Firm B's marginal cost Firm A's marginal cost of producing…

A: Marginal cost refers to the additional cost of production incurred in the process of increasing…

Q: 30 25 20 15 10- 1 3 5 6. 8. Labor 10- 4) 2. Marginal Product

A: Marginal product refers to change in total product with respect to change in input. It refers to…

Concept explainers

Price Discrimination

Price discrimination or differential pricing is based on the principle that the seller will charge the buyer a price based on the buyer’s ability and willingness to pay for the product rather than applying uniform pricing for all.

Question

11:16 Fri 10O Dec
* 9 80%
•..
managebac-prod-china.s3.cn-north-1.amazonaws.com.cn A
Page 8 of 46
AP Microeconomics
9 of 46
AP CollegeBoard
Test Booklet
Unit 5 Problem Set - FRQ's
Include correctly labeled diagrams, if useful or required, in explaining your answers. A correctly labeled diagram
must have all axes and curves clearly labeled and must show directional changes. If the question prompts you to
"Calculate," you must show how you arrived at your final answer.
Central Manufacturing Company is the only manufacturing facility in a small remote town, and Central Manufacturing
Company is the only employer of machinists in the area. The graph below shows the market for machinists with the
marginal factor (resource) cost curve, the labor supply curve, and the marginal revenue product curve.
120
Marginal
Factor Cost
Supply
75
63
57
45
36
Marginal
Revenue Product
15
210 300
600
800 Quantity of
Machinists
105
420 480
150 240
380
560
(a) If the wage rate is $63, state whether there will be a shortage or a surplus of machinists and calculate its size. Show
your work.
(b) Identify the profit-maximizing number of machinists. Explain using the labeling on the graph.
(c) Identify the profit-maximizing wage rate that Central Manufacturing Company will pay its machinists. Explain using
the labeling on the graph.
(d) If the marginal product of machinists increases, what will happen to the quantity of output produced by Central
Manufacturing Company? Explain.
(e) Assume instead that Central Manufacturing Company uses both labor and capital in producing widgets. The marginal
product of the last unit of labor hired is 120 widgets per day and the marginal product of the last unit of capital rented is
AP Microeconomics
Page 9 of 46
Wage Rate ($)

11:16 Fri 10 Dec
* O 80%
0..
AA rod-china.s3.cn-north-1.amazonaws.com.cn
Unit 5 MCC * Start Page
Emily Xu
Emily Xu
managebac...
Emily Xu
AP Microeconomics
Page 19 of 46
20 of 46
AP CollegeBoard
Test Booklet
Unit 5 Problem Set - FRQ's
Number of
Unskilled Workers Quantity of Radios
Produced (per day)
Hired
1
20
45
3
60
4
70
75
6
79
7
80
Assume that HZRad Company produces clock radios as shown in the short-run production function in the table above.
HZRad can sell all the clock radios it produces at a market price of $20 each and can hire all the unskilled labor it needs at
a wage of $90 per day per worker. Assume also that labor is the only variable input.
a. Using the specific information above, draw a correctly labeled graph of HZRad's current supply curve for
unskilled labor.
b. What is HZRad's profit-maximizing output level? Explain.
c. Suppose that HZRad is the first company to use a new technology that increases the productivity of its unskilled
workers.
i. How will the new technology affect the quantity of unskilled labor HZRad hires? Explain.
ii. How will the new technology affect the wage paid to HZRad's unskilled workers?
17.
Respond to all parts of the question.
Please respond on separate paper, following directions from your teacher.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

What is the difference between microeconomics and macroeconomics?
What assumptions about the economy must he true for the invisible hand to work? To what extent are those assumptions valid in line real world?
Would an op-ed piece in a newspaper urging the adoption of a particular economic policy be a positive or normative statement?
What would be another example of a system in the real world serve could serve as a metaphor for micro and macroeconomics?
What is the difference between a positive and a normative statement?
What is productive efficiency? Allocative efficiency?
Suppose Alphonsos town raises the price of bus tickets from 0.50 to 1 and file price of burgers rises from 2 to 4. Why is file opportunity cost of bus tickets unchanged? Suppose Alphonsns weekly spending money increases from 10 to 20. How is his budget constraint affected from all three changes? Explain.
During the Second World War, Germanys factories were decimated. It also suffered many human casualties, both soldiers and civilians. How did the war affect Germanys production possibilities curve?
If the price of a pie is 12, what is the maximum number of pies she could buy in a week?
Do economists have any particular expertise at making normative arguments? In other words, they have expertise at making positive statements (i.e., what will happen) about some economic policy, for example, but do they have special expertise to judge whether or not the policy should be undertaken?
If the price of a magazine is 4 each, what is the maximum number of magazines she could buy in a week?
What is an example of a problem in the world today, not mentioned in the chapter, that has an economic dimension?