If the marginal product of labor is less than the nominal wage divided by the price of output, a firm that wishes to maximize profits will raise the real wage. Ⓒhire more labor. maintain its current level of workers. Ⓒlay off workers.

Q: Which of the following would improve a worker’s marginal product? Group of answer choices an…

A: The marginal product of labour (or MPL) alludes to an organization's expansion in all-out production…

Q: Consider an economy with production function given by Y = AK0.5 10.5 where A is the total factor…

A: At optimum, marginal product of labor is equal to real wage rate. Marginal product of labor is the…

Q: presence of diminishing marginal returns to labor leads to decreasing marginal revenue product of…

A: The marginal product of labor is diminishing as extra labor is brought to the production technique.…

Q: A firm is currently hiring capital and labor so that MPL/PL<MPK/PK, if the firm wishes to maximize…

A: Marginal product of an input is the additional output produced by using additional unit of the input

Q: 24. Acompetitive fim will hire inputs up to the point where: x a. The price of the input equals its…

A: Correct option is c.

Q: uppose that the production function is Yt = AtKt^(1/2) Lt^(1/2) where Yt is output, Kt is the stock…

A: Optimal input demand problem: The optimal input demand bundle is such that at that bundle the firm…

Q: marginal product of labor for a firm Is defined by the following equation: MPN = A(100- N)" a. If…

A: Nominal wage, or money wage, is the literal amount of money you get paid per hour or by salary. here…

Q: QUESTION  The marginal revenue product of labor at the local sawmill is MRPL = 20 - 0.5L, where L =…

A: 1.The number of workers mill would hire would be 20 2.Overall the demand for labour firms depends on…

Q: Suppose the hourly wage rate is $17, the rental price of capital is $2 and the price of output is…

A: Cost minimization problem of producer: For the given output level the firm and per unit cost of…

Q: Please help

A: Production technologies or production function defines a relationship between the output and inputs.…

Q: 6. Plotting the supply of labor In Lexington, 90 people are willing to spend an hour working as…

A: Equilibrium in labor market depends on the demand and supply of labor. The shape of the labor supply…

Q: Assume a firm employs 10 workers and pays each $15 per hour. Further assume that the MP of the 10th…

A: Given:number of workers: 10wage: 15MP of the 10th worker: 5price of output: $2 First, let's compute…

Q: Consider the following Cobb-Douglas production function: Y = AK“L® (1) where Y is aggregate output,…

A: Ans. The output elasticity of labour is the ratio of percentage change in total output and…

Q: Select one or more: O a. A rise in labour supply will lead to a rise in wages b. Given a constant…

A: In the labor market, any change in labor supply or labor demand will lead to affect the market…

Q: The marginal revenue product represents the worker's contribution to the firm's total revenues. the…

A: Marginal Revenue Product (MRP) defines the additional revenue a firm earns by employing an extra…

Q: If the price of a good increases, then in the market for the type of labor needed to produce this…

A: A firm hires the labor till the marginal revenue product (i.e., MRP) is greater than or equal to the…

Q: If the MFC L > MRP L, the firm should hire more labor. True False

A: The production of an extra unit of output by an extra unit of labor is called the marginal product…

Q: Explain the relationship between the own-wage elasticity of labor demand and output demand…

A: Answer: Introduction: Own-wage elasticity of labor demand: the own-wage elasticity of labor demand…

Q: If the marginal product of labor is 50 per day, and if the market is $4.50, calculate the marginal…

A: Given, Marginal Product of labor (MPL)= 50 per day Market price (P) = $4.50

Q: Suppose a coal mine's workers can dig two tons of coal per hour and coal sells for $15 per ton. If…

A: The labour supply curve illustrates how shifts in real wage rates may have an impact on how many…

Q: A perfectly competitive firm should hire an additional worker only if а. Total revenue is less than…

A: In the perfectly competitive market structure there exists a large number of buyers and sellers. In…

Q: In a competitive labour market, an increase in the demand for labour might be due to an increase in…

A: The objective of the question is to identify the factors that might lead to an increase in the…

Q: 6. Plotting the supply of labor In Lexington, 90 people are willing to spend an hour working as…

A: Labor supply curve is upward sloping shows direct relationship between wage and quantity of labor…