Table 1. Chocolate chip cookie output and number of workers. Cookies sell for $2.50 each. Ingredients (butter, eggs, flour, nuts, sugar, vanilla how many workers will be hired and how many cookies made if the wage falls to $14) cost $0.50 for each cookie. Workers output( brownies) 1 10 2 34 3 57 4 78 5 97 6 114 7 129 8 142 9 152 10 159 11 163 12 164 13 164 14 163 15 161 16 158 17 154 18 149 19 143 20 136 question: Like many retail employers, Nick experiences high turnover among his workers which forces him to devote much time to hiring and training workers. He finds that paying higher wages discourages turnover saving money by making each worker more productive at higher wages. Now draw a hypothetical labor demand curve assuming higher wages are associated with higher productivity.
Table 1. Chocolate chip cookie output and number of workers. Cookies sell for $2.50 each. Ingredients (butter, eggs, flour, nuts, sugar, vanilla how many workers will be hired and how many cookies made if the wage falls to $14) cost $0.50 for each cookie.
|
Workers |
output( brownies) |
|
1 |
10 |
|
2 |
34 |
|
3 |
57 |
|
4 |
78 |
|
5 |
97 |
|
6 |
114 |
|
7 |
129 |
|
8 |
142 |
|
9 |
152 |
|
10 |
159 |
|
11 |
163 |
|
12 |
164 |
|
13 |
164 |
|
14 |
163 |
|
15 |
161 |
|
16 |
158 |
|
17 |
154 |
|
18 |
149 |
|
19 |
143 |
|
20 |
136 |
question:
Like many retail employers, Nick experiences high turnover among his workers which forces him to devote much time to hiring and training workers. He finds that paying higher wages discourages turnover saving money by making each worker more productive at higher wages. Now draw a hypothetical labor demand curve assuming higher wages are associated with higher productivity.
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