PROBLEMS connect All the workers Stone hires belong to the union. How does the minimum wage affect Stone's decision about how many workers to hire? C. If the minimum wage set by the union had been $400 per week, how would the minimum wage affect Stone's decision about how many workers to hire? d. If Stone again faces a market wage of $250 per week but the price of jeans rises to $45, how many work- ers will the company now hire? Mountain Breeze supplies air filters to the retail market and hires workers to assemble the components. An air ilter sells for $26, and Mountain Breeze can buy the components for each filter for $1. Sandra and Bobby are two workers for Mountain Breeze. Sandra can assemble 60 air filters per month and Bobby can assem- ble 70. If the labor market is perfectly competitive, how much will Sandra and Bobby be paid? (LOI) 2. Acme Inc. supplies rocket ships to the retail market and hires workers to assemble the components. A rocket ship sells for 30,000, and Acme can buy the compo- nents for each rocket ship fOr are two workers for Acuie. Sam can assemble 1/5 of a rOR in per month and Wiley 4. Carolyn owns a soda factory and hires workers in a competitive labor market to bottle the soda. Her com- pany's weekly output of bottled soda varies with the number of workers hired, as shown in the following table: (LO2, LO3) Wiley and Sam 710. If nd rocket uch will Number of workers Cases/week is nerfect the la components are Acme's only 1 200 Sam and ncy 360 3. Stone Inc. owns a clothing factory and hires workers in a competitive labor market to stitch cut denim fabric into jeans. The fabric required to make each pair of jeans costs $5. The company's weekly output of fin- ished jeans varies with the number of workers hired, as shown in the following table: (LO2, LO3) 480 560 5 600 af each case sells for $1O more than the cost of the materials used in producing it and the competitive market wage is $1,000 per week, how many workers should Carolyn hire? How many cases will be pro- duced per week? Jeans (pairs/week) Number of workers 25 1 b Suppose tne Soda Bottlers Union now sets a weekly acceptable wage of $1,500 per week AIL the workers Carolyn hires belong to the union. How minimum wage alfect Carolyn's decision to hire? again $1.000 per week but the price of soda rises to S15 per case, how many workers wil 45 minimu 60 does 72 about how many worke 80 c.If the 85 Caroly owire? 5. Sue is offered a job reshelving books in the Universit of Montana library from noon until p.m. each Frida Her reservation wage for this task is $10 per hour. (LO If the library director offers Sue $100 per hour, ho uch economiic surplus will she enjoy as a result accepting the job? d.If the jeans sell for $35 a pair and the competitive market wage is $250 per week, how many workers should Stone hire? How many pairs of jeans will the company produce each week? b. Suppose the Clothing Workers Union now sets a weekly minimum acceptable wage of $230 per week. 234 L 6