Question 1 Candice's' Cookies is a new cookie delivery company in Gainesville, Florida. The firm hires local college students to sell cookies door-to-door in higher income neighborhoods. Each of these "Sales Associates" sells cookies, which increases Candice's Cookies' total revenue, but must be paid an hourly wage. The graph below depicts Candice's Cookies' demand for labor curve when the retail price of a cookie is $2. $35 Hourly Wage C. 3 cookies D. 4 cookies E. 5 cookies $30 $25 $20 $15 $10 $5 6 8 10 12 14 Number of Sales Associates Part (i): Suppose that the retail price of a cookie is $2.50. What is the marginal product of the 4th Sales Associate? A. 1 cookie B. 2 cookies Part (ii): Suppose that the retail price of a cookie is $2.50. What is the marginal product of the 6th Sales Associate? A. 1 cookie B. 2 cookies C. 3 cookies D. 4 cookies E. 5 cookies Part (iii): Suppose that the retail price of a cookie is $2.50. What is the marginal product of the 8th Sales Associate? A. 1 cookie B. 2 cookies C. 3 cookies D. 4 cookies E. 5 cookies Part (iv): Conditional on holding the price of the output good fixed, does the marginal product of each additional worker increase or decrease as the firm increases output and employment? Explain your answer.

Question 1 Candice's' Cookies is a new cookie delivery company in Gainesville, Florida. The firm hires local college students to sell cookies door-to-door in higher income neighborhoods. Each of these "Sales Associates" sells cookies, which increases Candice's Cookies' total revenue, but must be paid an hourly wage. The graph below depicts Candice's Cookies' demand for labor curve when the retail price of a cookie is $2. $35 Hourly Wage C. 3 cookies D. 4 cookies E. 5 cookies $30 $25 $20 $15 $10 $5 6 8 10 12 14 Number of Sales Associates Part (i): Suppose that the retail price of a cookie is $2.50. What is the marginal product of the 4th Sales Associate? A. 1 cookie B. 2 cookies Part (ii): Suppose that the retail price of a cookie is $2.50. What is the marginal product of the 6th Sales Associate? A. 1 cookie B. 2 cookies C. 3 cookies D. 4 cookies E. 5 cookies Part (iii): Suppose that the retail price of a cookie is $2.50. What is the marginal product of the 8th Sales Associate? A. 1 cookie B. 2 cookies C. 3 cookies D. 4 cookies E. 5 cookies Part (iv): Conditional on holding the price of the output good fixed, does the marginal product of each additional worker increase or decrease as the firm increases output and employment? Explain your answer.

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

State whether each of the following events will result in a movement along the market supply curve of agricultural labor in the United States or whether it will cause the market supply curve of labor to shift. If the supply curve shifts, indicate whether it will shift to the left or to the right in the provided graph. A decline in the agricultural wage rate will result in a movement along the labor supply curve. An increase in wages outside of agriculture will result in a shift in labor supply curve. the Use the line drawing tool (for a shift in supply) or the arrow drawing tool (for a movement along the supply curve) to indicate the effect on the supply curve for labor as a result of as a result of an increase in wages outside of agriculture by drawing either a new labor supply curve or an arrow overlapping the original supply curve indicating the direction of the movement in Graph A. Carefully follow the instructions above, and only draw the required objects. Wage Graph A S₁ Quantity…
3. Suppose that the wage rate is $16 per hour and the price of the product is $ 2.0. Values for output and labor are in units per hours, as given below: Quantity (Q) Labor ( L) 0. 20 35 47 57 65 70 A. Find the profit-maximizing quantity of labor ( Hint: Extend the table about and calculate MPI and MRPI first and go from there). 345
If the substitution effect of a wage change outweighs the income effect of a wage change, the labor-supply curve is A) horizontal. B) upward sloping. C) vertical. D) backward bending.
1. Computing labor productivity and its relationship to the demandfor labor Sizzler's produces charcoal grills in a small manufacturing facility and sells the grills in a competitive market. The following table presents the company's production function: Labor (Number of workers) 0 OUTPUT (Grills) 400 360 320 280 Use the blue points (circle symbol) to plot the production function for Sizzler's on the following graph. 240 200 160 120 80 40 0 1 0 2 3 4 5 1 Output (Grills) 0 95 185 260 320 355 2 3 LABOR (Number of workers) 4 5 Production Function (?) Calculate the marginal product of labor (MPL) of each worker, and then plot the MPL curve on the following graph using the blue points (circle symbol).
Graph the demand for labor as a function of the wage using this data. What happens to the number of workers when wage goes up? How many workers will be hired and how many cookies made at a wage of 40.50? Please give me the equations so I can understand how to create this graph.
Use the graph to answer the question that follows. Based on the graph, which of the following factors can cause the market labor supply curve for the telecommunications industry to shift from S1 to S2? A-An increase in the marginal revenue product of every telecommunications firm B-A decrease in the number of domestic residents immigrating to foreign countries C-An increase in the wage rate of all telecommunications workers within the country D-A decrease in the value of leisure time by all domestic telecommunications workers E-An increase in the percentage of elderly individuals retiring from telecommunications (2)Suppliers of factors of production in a perfectly competitive market respond to higher factor prices by ________ of their factors, ceteris paribus. A-changing the quality. B-increasing the productivity. C-decreasing the productivity D-increasing the quantity available. E-decreasing the quantity available
Martin's Magical Milk Farm produces cow's milk and sells it to a local store for $2.20 per gallon. Agricultural workers in the area are paid a fixed wage rate of $90 per day. Use this information and the information in the table below to answer the questions that follow. What is the marginal product of labour for employing a third worker? What is the value of marginal product of labour for employing a sixth worker? $ Workers 0 1 2 3 4 5 6 Quantity of Milk per day(gallons) 0 70 130 180 220 240 250 Units
Molly owns a company that gives one-on-one skiing lessons. She is deciding how many ski instructors to hire. The price of a ski class is $100, and the equilibrium wage for a ski instructor is $300 per day. According to the table below and the Rational Rule for Employers, how many ski instructors should Molly hire? Total number of Number of ski ski lessons instructors 1 8 2 14 3 17 4 19 20 A) 1 B) 2 C) 3 D) 4 E) 5
The figure given below shows a backward-bending labor supply curve for an individual. Along which part of the labor supply curve in the figure below does the income effect of a wage change outweigh the substitution effect? Figure 12.1 Wage b Quantity of labor Between points a and b Between points a and c Between points b and c Between points c and d Between points b and d О О
Taco King produces tacos The market for tacos is perfectly competitive, and the price is $3.50 a taco. The labor market is competitive, and the wage rate is $105.00 a day The table shows part of the workers total product schedule Calculate the marginal product of hiring the third worker and the value of the marginal product of the third worker The marginal product of hiring the third worker is tacos a day The value of the marginal product of the third worker is Saday 1 C Workers 2 3 4 5 6 Tacos per day 44 80 110 134 146
Consider the following labor supply and demand curves. For each of the following situations, show and explain what would happen to the labor market. a) The firm finds a new market for their output. Wage WE S Quantity
In Akron, 150 people are willing to spend an hour working as yoga instructors for an hourly wage of $10. For each additional $5 that the wage increases above $10, an additional 50 people are willing to spend an hour working. For hourly wages of $10, $15, $20, $25, and $30, plot the daily labor supply curve for yoga instructors on the following graph. 50 45 40 35 & WAGE (Dollars per hour) 20 15 10 5 0 0 50 100 150 200 250 300 350 LABOR (Number of workers) 400 450 500 Supply What is one explanation for why this labor supply curve is upward sloping? Wages have to increase to accommodate union pressure. Unemployment benefits are steadily declining. The opportunity cost of leisure decreases as wages decrease. People prefer to spend time doing leisure activities rather than working. ?