Refer to the diagram to the right: Land is the other (fixed) factorof production. Currently the real wage is $15.Calculate the change in land rents due to a $5 increase in thereal wage.A Land rents = $. (Enter your response rounded to thenearest dollar. Be sure to include the minus sign if necessary.)60-55-5045-40-3530-25-20-15-10-5-0+0Marginal product of labor, MPL10Real WageReal WageMPL20 30 40 50 60 70 80 90 100 110Labor, L

Economic rent is the surplus income earned by a resource or factor of production, like land or…

Refer to the diagram to the right: Land is the other (fixed) factor of production. Currently the real wage is $15. Calculate the change in land rents due to a $5 increase in the real wage. (Enter your response rounded to the A Land rents = $ nearest dollar. Be sure to include the minus sign if necessary.) 60- 55- 50- 45- 40- 35- 30- 25- 20- 15- 10- 5- Marginal product of labor, MPL Real Wage Real Wage MPL 0 10 20 30 40 50 60 70 80 90 100 110 Labor, L

Refer to the diagram to the right: Land is the other (fixed) factor of production. Currently the real wage is $15. Calculate the change in land rents due to a $5 increase in the real wage. (Enter your response rounded to the A Land rents = $ nearest dollar. Be sure to include the minus sign if necessary.) 60- 55- 50- 45- 40- 35- 30- 25- 20- 15- 10- 5- Marginal product of labor, MPL Real Wage Real Wage MPL 0 10 20 30 40 50 60 70 80 90 100 110 Labor, L

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

Sam owns and operates ye olde yogurt shoppe. His revenue this year was $135,000. he paid food supplier $50,000 for fruit, yogurt and milk and paid $5000 For paper and cleaning supplies. In addition to working again the store himself, he hired student lady to work part time and it cost him $25,000 in labor costs. He paid $12,500 to rent his store. He borrowed money from bank and had to pay them $5000 in interest costs. To run his company, sam gave up $50000 per year job and $1500 in interest amount he put into the business. He estimates that companies similar to his earn at least $6750 over costs. 1. separate(list) sam's accounting costs into fixed costs be variable costs by name and amount. 2. list each of sam's implicit costs by name and amount 3. calculate sam's economic profit/loss. Show what costs are included, and if Sam expects the Sam revenue and costs next year, he should continue in this business? Why/ why not?
4. At Tuxi's, tacos cost $2.50 (p=2.5) and the market wage for labor is $12.50. a. Calculate the marginal product of labor (MPE), average product of labor (APE), value of the marginal product of labor (MRPE), and value of the average product of labor (VAPE) in the chart below. Number of Tacos workers 1 15 2 28 3 38 4 47 5 54 6. 59 7 62 8 64 65 b. What's the optimal amount of labor to use? c. What would be the per-hour profits at Tuxi's if capital costs $50 per hour?
TOTAL AND MARGINAL PRODUCT Total Product [Output] 70 60 50 40 30 20 10 0 Marginal Product 20 10 0 -10 -20 1 Labor Input 1 2 2 2 3 3 4 4 5 5 6 6 7 7 Reset 8 Labor Input 8 Labor Input PRODUCTIVITY CALCULATIONS Labor Input 0 Output 0 Marginal Product Instructions: Move the slider at the bottom of the diagram to change the quantity of labor hired for both graphs and the table. Move the production slider to 4 units of labor. Suppose you had the information for the L=1 row and the L-4 row, but the row(s) in between them were missing and you didn't have any information in the Marginal Product column. If you wanted to estimate the marginal product, you might assume the marginal products of each of the 3 additional workers are equal. a. Estimate the marginal product of each additional worker if L were to increase from 1 to 4. b. Calculate the slope of the total production function between L-1 and L=4. L
Total Product 75 68 66 57 42 15 0 23 never intersect the horizontal axis. 5 6 7 8 Refer to the figure above, if the marginal product of labor curve was plotted on this figure, with marginal product on the vertical axis, the marginal product of labor curve would Labor (units) reach its maximum at the 5th unit of labor. intersect the horizontal axis at a point somewhere beyond the 8th unit of labor. intersect the horizontal axis at a point between the 5th and 6th unit of labor.
29) How many units of labor will the AquaPlant hire based on the figures from the table? 30) What is the economic concept associated with the decline in MPL as the number of labor units increase?
In the short run, a tool manufacturer has a fixed amount of capital. Labor is a variable input. The cost and output structure that the firm faces is shown in the table below. Assume the product price is $2. a. Calculate the marginal revenue product and the marginal resource cost, and then fill in the blanks in the labor supply table. Instructions: Enter your answers as a whole number. Marginal Marginal Resource Units of Total Labor Marginal Product Wage Rate Total Product Revenue Labor Cost Product (Labor) Cost 10 200 $11 $110 11 220 20 12 132 12 238 18 13 156 13 254 16 14 182 14 268 14 15 210 15 280 12 16 240 b. What are the equilibrium wage rate and level of employment? Equilibrium wage rate = $ %3D Equilibrium level of employment workers
Baghiben
Labor(workers per day) Total product (units per day) Marginal product Average product 0 0 0 0 1 2 2 2 2 8 3 12 4 15 5 16 1 In the above table, the marginal product is greatest when the fourth worker is hired. first worker is hired. third worker is hired. second worker is hired.
Use the graph to answer the question that follows. Based on the chart above, if the product sells at a price of $10 per unit, what is the marginal revenue product of the seventh unit of labor? 0 $6.50 About $5 About $25 Indeterminate