Refer to the diagram to the right: Land is the other (fixed) factor of production. Currently the real wage is $30 Calculate the change in land rents due to a $5 increase in the real wage A Land rents $ (Enter your response rounded to the nearest dollar. Be sure to include the minus sign if necessary.) Calculate the change to the total wage bill (total payment to labor) A Total payment to labor - $ (Enter your response rounded to the nearest dollar. Be sure to include the minus sign if necessary) 60 55- 50- 45 40- 35 30- 25 20- 15- 10- 54 of Marginal product of labor, MPL Real Wage Real Wage MPL 10 20 30 40 50 60 70 80 90 100 1 Labor, L

Refer to the diagram to the right: Land is the other (fixed) factor of production. Currently the real wage is $30 Calculate the change in land rents due to a $5 increase in the real wage A Land rents $ (Enter your response rounded to the nearest dollar. Be sure to include the minus sign if necessary.) Calculate the change to the total wage bill (total payment to labor) A Total payment to labor - $ (Enter your response rounded to the nearest dollar. Be sure to include the minus sign if necessary) 60 55- 50- 45 40- 35 30- 25 20- 15- 10- 54 of Marginal product of labor, MPL Real Wage Real Wage MPL 10 20 30 40 50 60 70 80 90 100 1 Labor, L

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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