The figure on the right shows the market for labor in a given industry. The demand curve is downward-sloping because marginal productivity as more workers are employed, while the supply curve is upward-sloping since an increase in the wage increases the opportunity cost of Now suppose that the price of the product being produced decreases, all else constant. 1.) Using the line drawing tool, show the impact of this event. Label your curve appropriately. Carefully follow the instructions above and only draw the required object. According to the graph, the consequence of the change in price is a market wage and a level of employment. CH Daily wage Days worked per year D₁

The figure on the right shows the market for labor in a given industry. The demand curve is downward-sloping because marginal productivity as more workers are employed, while the supply curve is upward-sloping since an increase in the wage increases the opportunity cost of Now suppose that the price of the product being produced decreases, all else constant. 1.) Using the line drawing tool, show the impact of this event. Label your curve appropriately. Carefully follow the instructions above and only draw the required object. According to the graph, the consequence of the change in price is a market wage and a level of employment. CH Daily wage Days worked per year D₁

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Suppose you are considering hiring another worker. Also assume that you are at a firm that is operating at a point where the marginal product of labor is 5 and the price of each unit of labor is $2, and the marginal product of capital is 20 and the price of each unit of capital is $10. Should you hire another worker? If you hire another worker, what will happen to the marginal product of labor and why?
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Catalog and Study Tools Rental Options College Success Tips Career Success Tips ? Help Give Feedback 5. Problems and Applications Q5 1. Initial Demand and Equilibrium 2. New Output Price Q = 120L-L² MPL = 120- 2L The nation of Ectenia has 40 competitive apple orchards, which sell apples at the world price of $2 per apple. The following equations describe the production function and the marginal product of labor in each orchard: where is the number of apples produced in a day, L is the number of workers, and MPL is the marginal product of labor. Suppose the world price of apples doubles to $4 per apple. OL=60-0.25W OL=120-2W What is each orchard's labor demand as a function of the daily wage W? OL= 2,400-5W OL=60-0.125W 3. Crop Destruction What is the market's labor demand? OL= 2,400 10W OL= 2,400-5W OL=120 - 10W STEP: 2 of 3 OL=60-0.125W Ectenia has 200 workers who supply their labor inelastically. The equilibrium wage is $ per worker per day. Each orchard hires. that wages are the…