LO LL 50 45 40 20 15 WAGE (Dollars per hour) 6. Plotting the supply of labor In Philadelphia, 180 people are willing to work an hour as hostesses if the wage is $20 per hour. For each additional $5 that the wage rises above $20, an additional 45 people are willing to work an hour. For wages of $20, $25, $30, $35, and $40 per hour, plot the daily labor supply curve for hostesses on the following graph. Supply 35 25 5. 06 135 180 225 270 315 405 450 LABOR (Number of workers) What is one explanation for why this labor supply curve is upward sloping? MacBook Pro #3 24 2. 4. R M B. N 20 10 WAGE (Dollars per hour) Homework (Ch 18) 45 Supply 40 35 30 25 15 5. + 06 135 LABOR (Number of workers) 45 180 225 270 315 09 405 450 What is one explanation for why this labor supply curve is upward sloping? Labor production functions exhibit diminishing marginal returns. The opportunity cost of leisure increases as wages increase. Firms are willing to hire fewer hostesses at a higher wage. Wages have to increase to accommodate union pressure.

LO LL 50 45 40 20 15 WAGE (Dollars per hour) 6. Plotting the supply of labor In Philadelphia, 180 people are willing to work an hour as hostesses if the wage is $20 per hour. For each additional $5 that the wage rises above $20, an additional 45 people are willing to work an hour. For wages of $20, $25, $30, $35, and $40 per hour, plot the daily labor supply curve for hostesses on the following graph. Supply 35 25 5. 06 135 180 225 270 315 405 450 LABOR (Number of workers) What is one explanation for why this labor supply curve is upward sloping? MacBook Pro #3 24 2. 4. R M B. N 20 10 WAGE (Dollars per hour) Homework (Ch 18) 45 Supply 40 35 30 25 15 5. + 06 135 LABOR (Number of workers) 45 180 225 270 315 09 405 450 What is one explanation for why this labor supply curve is upward sloping? Labor production functions exhibit diminishing marginal returns. The opportunity cost of leisure increases as wages increase. Firms are willing to hire fewer hostesses at a higher wage. Wages have to increase to accommodate union pressure.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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