Suppose there are 100 workers in the economy. The workers have to choose between a clean job and a dirty job. Worker 1’s reservation price for taking the dirty job is $1; worker 2’s reservation price is $2, etc. Because of government restrictions, there are only 20 dirty jobs.1. What is the equilibrium wage differential between a clean job and a dirty job? Explain answer. 2. Which workers (among workers 1, 2,..., 100) will be employed at the dirty jobs?

Suppose there are 100 workers in the economy. The workers have to choose between a clean job and a dirty job. Worker 1’s reservation price for taking the dirty job is $1; worker 2’s reservation price is $2, etc. Because of government restrictions, there are only 20 dirty jobs.1. What is the equilibrium wage differential between a clean job and a dirty job? Explain answer. 2. Which workers (among workers 1, 2,..., 100) will be employed at the dirty jobs?

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

Suppose that John is a high-school drop out with a market wage of $8. a. Give two reasons why John' MRPL might increase if the firm pays an efficiency wage? b. The relationship between John's wage and MRPL is given in the table below. What is the efficient wage for John? Wage ($/hour) MRPL ($/hour) $8 $8.00 $9 $9.50 $10 $11.00 $11 $12.25 $12 $13.00 $13 $13.50 $14 $14.00
Paul owns a barbershop and is deciding how many barbers to hire. The price of a haircut is $15, and the equilibrium wage of barbers is $150 per day. According to the table below and the Rational Rule for Employers, how many workers should Paul hire? Number of barbers 1 04 3 1 5 2 2 3 4 Total number of haircuts 18 34 46 56 60
please draw the demand-supply graph 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.
Consider the labor market for police officers. Police officer have preferences over their salary, amenities, and the characteristics of the municipality in which they serve. (a) One would reasonably expect that high-crime municipalities pay higher wages than low-crime municipalities. But suppose high-crime municipalities pay lower wages than low-crime municipalities. Why? (Assume the primary source of funding for police officers comes from tax revenues from within the municipality and that high-crime municipalities tend to generate less tax revenue than low-crime municipalities.) (b) Does your discussion suggest anything about the relation between high-crime municipality and the quality of police officers in those districts?
Answering all questions compulsory...
Michael Scott owns a bakery and is considering hiring two more workers, Pam and Jim. Suppose that the market wage for another worker is $90 per day. Pam would generate a daily marginal product of 5 cakes, while Jim would generate a marginal product of 4 cakes. If cakes sell for $40 each and the ingredients for each cake cost $20, what should Michael Scott do? Group of answer choices Not hire either worker Only hire Jim Hire both Pam and Jim Only hire Pam
wage (S/worker) Labor Supply 150 125 100 75 Labor Demand 50 25 25 50 75 100 125 150 labor (ths. workers/day)
26help
Please answer this question
Homework (CH 18) 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) 400 320 280 240 Use the blue points (circle symbol) to plot the production function for Sizzler's on the following graph. (?) 200 1 160 80 ! 0 Q A N 1 0 2 3 4 5 @ 2 Output (Grills) 0 90 175 245 300 325 LABOR (Number of workers) W S X # 3 E D 4 C 4 $ R F % 5 V Production Function T -O- G 6 B Y & 7 H U 8 ( M 9 K O ) 0 L P
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.
Assume that the firms in the United States set their price as a markup on their wage cost. Assume every firm is identical in the United States, and that they set a wage equal to $22. Recall that the number of employed workers in the United States is 153.5 million. Q 6. Draw the average product of labor on the graph. This value will vary based on how you draw your own graph, but it needs to make sense given the wage. Is the average product of labor greater than, equal to, or less than the wage?