3027Labor SupplyME2421Labor Demand1815123.28.10LABOR (Hours)Which of the following explains why the ME, curve lles above the labor supply curve?O The firm faces a downward-sloping demand curve in the market for newspapers.O The marginal cost of hiring an additional unit of labor includes not only that unit of labor's wage but also an increase in the wages of allthe other units of labor.O Each additional unit of labor has a lower marginal product than the previous one.O Each worker must be paid benefits in addition to the wage rate.To maximize profits, the firm will hirev and pay a wage of $per hour, which isthe marginal valueproduct of the final unit of labor hired.WAGE (Dollars per hour) 6. Monopsony basicsConsider a newspaper in a small town that has monopsony power in hiring journalists. The following table shows the labor hours that will be suppliedat each of the given hourly wages, as well as the total cost of labor at each quantity of labor. Suppose the newspaper's demand for labor as a functionof the marginal value product of labor (MVPL) is given by L= 8-Compute the marginal expense (MEL) and marginal value product (MVP) of adding an additional hour at each quantity and enter the values into thefollowing table.Labor SupplledTotal Labor CostMELMVPHourly Wage(Hours)(Dollars per hour)(Dollars per hour)(Dollars per hour)336.129327124481575The following graph depicts the supply of labor in this market.Use the grey points (star symbol) to plot the marginal expense at the five quantities of labor given in the prevlous table. Then use the blue points(circle symbol) to plot the firm's demand for labor as a function of the MVPL.

The cost of production that represents the change in the total cost of production cost which tends…

Answered: Consider a newspaper in a small town…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Consider the following production function: q=100L0.8K0.4 Currently the wage rate (w) is $2.00 and the price of capital (r) is $4.00. If the firm is using 100 units of capital in production, how much labor should be employed to minimize costs? Labor input = units. (Enter a numeric response using a real number rounded to two decimal places.)
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The following table shows the relationship between workers and output for a factory in the short run, with capital held constant. This firm is a monopoly in the output market, and price and marginal revenue for the firm are also given in the table. Find the marginal revenue product of labor (MRPL). Marginal Physical Product (MPPL) Labor Input 0 1 2 3 4 5 If the wage rate is $408, this firm will hire 0 20 14 12 9 3 workers. In general, a monopolist will employ Price of Output (P) 40 39 38 37 36 35 Marginal Revenue (MR) 38 36 34 32 30 workers than a similar competitive firm. MRPL 760 504 408 288 90
A firm uses capital and labour to produce widgets. In the short-run capital is fixed, while labour is variable. The short-run production function is X=-L3 + 24L2 + 240L Where X is the number of widgets produced in per week, and Lis the number of workers employed. Each worker works a 40-hour week. The wage rate is $12 per hour. Calculate the range of values for Lover which the firm is in stage I, stage II and stage III what is the minimum product price at which the firm will operate in the short-run? The product price, over which the firm has no control, is such that the firm's maximum possible pure profit $ 1096 per week. In order to achieve that level of profit it must employ 16 workers. How much is the firm's total fixed cost?
Suppose the hourly wage rate is $14, the rental price of capital is $2 and the price of output is constant at $42 per unit. Firm's production technology is q = 4K0.25 0.75, the marginal product of employment is MPE =3K0.25E-0.25 and the marginal product of capital is MPK = K™ 0.75 0.75. What is firm's optimal demand of labor if firm plans to produce q=19 units of outputs in the long-run? (please keep 1 decimal place in your answer)
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 $20.00 per hour and the price of a Hamburger is $8.00 and the production function for the workers is: Q = 11L – 0.25L^2 a. 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: b. Compute the maximum profit at Your Restaurant. (note—consider that profit involves Total Revenue and Total Costs). 1 Point c. Compute the profit created if You hire an additional worker. Explain why it is or is not profit maximizing to hire an additional worker. The idea of this question is to recognize that we can find the profit maximizing quantity of labor– after that point, profit begins to…
V3 given froduction function F=K^1/4 L^1/16 price of capital and labor are v and w 1)find short run cost function with quantity X, and that there are Y amount of capital purchased 2)find the long run contigent demand for capital and labor
Questions 16.6-16.10: In the table, L is the units of labor, TP, is the total product of labor, MP is the marginal product of labor, TR is total revenue, and MRP. is the marginal revenue product of labor. Assume the other quantities employed by the firm remain constant. Answer these in order. That is, do not answer 16.7 before 16.6 is answered. ТР MPL Price TR MRP. $1000 1. 10 1000 2 18 1000 3. 24 1000 4 28 1000 16.6. Compute the MPL 1000 30 16.7. Compute TR. 16.8. Compute MRP.
A firm's production function is Q = 5 + 25L - .5L2 + 30K – K2, |3D and its demand function is PQ = MRQ = d = $30. The prices of L and K are PL = $6 and PK = $12. Use Excel Solver to find the profit-maximizing and cost minimizing amounts of L and K to employ. The profit-maximizing and cost minimizing amount of L is: А. L = 16. L= 25. C. L= 38. D. L= 42. B.
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 Company is the only employer. Its only variable input is labor, having a marginal product equal to 20-L. It faces a supply curve for labor of W = 4 + 4L, where W is the wage rate and L is the number of person-hours employed. The marginal factor cost curve MFC = 15 + 2L. Suppose the firm can sell all it at a constant price of 10. %3D How much labor (L) does will this company employ? What is the wage this company will offer its employees?

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