(Problem 1, Page 437) A firm identifies the following relationship between thereal wage it pays and the effort exerted by its workers:Real Wage81012141618The marginal product of labor for this firm isMPN = E(100-N)/15Effort71015171920where E is the effort level and N is the number of workers employed. If thefirm can pay only one of the six wage levels shown, which should it choose?How many workers will it employ?There are 200 workers in the town where the firm is located, all willing towork at a real wage of 8. Does this fact change your answer to the first part ofthis question? If so, how?

The huge real wage differentials that may still be found between rich and developing countries are…

Problem 1, Page 437) A firm identifies the following relationship between th real wage it pays and the effort exerted by its workers: Real Wage 8 10 12 14 16 18 The marginal product of labor for this firm is MPN = E(100-N)/15 Effort 7 10 15 17 19 20 where E is the effort level and N is the number of workers employed. If th firm can pay only one of the six wage levels shown, which should it choos How many workers will it employ? There are 200 workers in the town where the firm is located, all willing to work at a real wage of 8. Does this fact change your answer to the first pa this question? If so, how?

Problem 1, Page 437) A firm identifies the following relationship between th real wage it pays and the effort exerted by its workers: Real Wage 8 10 12 14 16 18 The marginal product of labor for this firm is MPN = E(100-N)/15 Effort 7 10 15 17 19 20 where E is the effort level and N is the number of workers employed. If th firm can pay only one of the six wage levels shown, which should it choos How many workers will it employ? There are 200 workers in the town where the firm is located, all willing to work at a real wage of 8. Does this fact change your answer to the first pa this question? If so, how?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Q77
For a production process, the marginal product of labour is given by the equation: MPL= 12L - 0.4L2. The first 18 items produced can be sold for $100 each, and beyond that production level, the unit selling price is $90. What is the marginal revenue product of labour when labour input is 20? a.6800 b.8000 c.9000 d.7500 e.7200
During the 1920s, Charles Cobb and Paul Dougkas modeled totalproduction output P (of a firm, company or entire economy) as a function of labourhours involved x and capital invested y (each includes the monetary worth of allbuildings and equipment). The Cobb-Douglas production function isP(x, y) = k x^α y^(1−α),where k ad α are constants representative of a particular firm or economy.(1) Show that doubling of both labor and capital results in doubling productionP.(2) Suppose a particular firm has the production function for k = 120 andα =3/4. Assume each unit of labor costs $250 and each unit of capital costs$400, and that the total expense for all costs cannot exceed $100,000. Findthe maximum production level for the firm.(3) Compute the production level at x = 64 and y = 81. If the capital isdecreased by 3 units, by how many units the labor should be adjusted toso that there is not change in production level.
Mrs. Mei Mei, the owner and manager of the Moora Photocopy Sdn Bhd located near your university, is contemplating to keep her shop open after 6 p.m. and until midnight. In order to do so, she would have to hire additional workers, L. She estimates that the additional workers would generate the following total output, Q (where each unit of output refers to 100 pages duplicated). Workers hired (L) 0 1 2 3 4 5 6 Total product (Q) 0 12 22 30 36 40 42 A. Help Mrs. Mei Mei to calculate the average product (APL) and marginal product (MPL) of the additional worker (please copy the table in your answer). B. Using the VMP rules, how many workers should Mrs. Mei Mei hires if the price of each unit of output is $10 and each workers hired must be paid $40 per day (show the relevant calculation. C. Using MR=MC approach, prove that the number of workers that Mrs. Mei Mei should hire is the same as that obtained in (b).
Twentyfirst Century Electronics has discovered a theft problem at its warehouse and hasd decided to hire security guards. The firm wants to hire the optimal number of security guards. The following table shows how the number of security guards affects the number of radios stolen per week. Number of Guards O 1 2 345 Number of Radios Stolen per week 50 30 20 14 8 6 a) If each security guard is paid $200 a week and the cost of a stolen radio is $25, how many security guards should the firm hire? b) If the cost of a stolen radio is $25, what is the most the firm would be willing to pay to hire the first secuirty guard? c) If each security guard is paid $200 a week and the cost of a stolen radio is $50, how many security guards should the firm hire?
Tom Petersen is considering renovating bar stools at Dreamland. The productionfunction for new bar stools is given byq= 0.5L0.5where q is the number of stools produced during the renovation week and l represents thea number of worker hours employed during the period. The firm is a price taker for both bar stools(which sell for P) and workers (which can be hired at a wage rate of w per hour).a. What is the cost function for this firm C(w,q)?b. What is the supply function for bar stools q(P,w)?c. What is the profit function for this firm (P,w)?d. What is the firm’s demand function for labor function L(P,w)?
8.Suppose the marginal product of labor is MPL=10 and the cost of each worker is w=50. What is the marginal cost at this point? Hint: In discrete terms, MPL=output from adding an additional worker, w=cost of an additional worker, and MC=cost of an additional unit of output.
Goleta Brewing Company hires only two types of labor, managers and brewing assistants (denoted M and B, respectively). GBC has the following Cobb-Douglas production function F(M,B) = M.5 B.5 and wants to produce 10 barrels of pale ale this week. If the wage of managers is $50 per hour and the wage of brewing assistants is $10 per hour, how many managers and brewing assistants should the firm hire (round to nearest whole number)? How does your answer change when the wage of managers decreases to $30 per hour and the wage of brewing assistants remains constant. Is this result consistent with your intuition?
Q9 please help fast! All info is there Suppose that the firm has production function F(L,M) = 4L1/2M1/2 (where L is the number of workers and M is that of machines) and currently uses 16 machines. To produce 32 units of output, how many workers does the firm need to hire?
What is the impact of recession in our economy?(please do not copy answers on the internet, thank you)
It is easy to conclude that when hiring workers in the short run whose marginalproductivity rises, the average product of labor will rise as well. However, if workersproductivity declines, average product of labor may still be rising. Explain why this mayhappen.
1