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 = $175. (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 = $ 150. (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- Marginal product of labor, MPL 20- 15- 10- 5- 0+ 0 10 20 30 40 50 60 Real Wage Real Wage MPL 70 80 90 100 110
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 = $175. (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 = $ 150. (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- Marginal product of labor, MPL 20- 15- 10- 5- 0+ 0 10 20 30 40 50 60 Real Wage Real Wage MPL 70 80 90 100 110
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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The correct answers are showing but can someone explain how to find -175 for the first part
Note:-
- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.
- Answer completely.
You will get up vote for sure
Transcribed Image Text: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 = $ - 175. (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 = $ 150. (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-
5-
0-
0
Marginal product of labor, MPL
10 20 30
40
Real Wage
Real Wage
50 60
Labor, L
MPL
70 80 90
100 110
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