The following graph depicts the daily labour supply curve for Jake, a worker in the construction industry in Vancouver. 30 27 24 21 18 15 12 Labour Supply 3 + + + 1 2 3 4 5 7 10 LABOUR (Hours worked) If the wage rate is $30 per hour, Jake will supply hours of work per day. additional The wage rate must be S per hour for Jake to supply 2 hours of work per day. fewer If the wage rate decreases from $30 per hour to $9 per hour, Jake will supply hours of work per day. WAGE (Dollars per hour) ca

The following graph depicts the daily labour supply curve for Jake, a worker in the construction industry in Vancouver. 30 27 24 21 18 15 12 Labour Supply 3 + + + 1 2 3 4 5 7 10 LABOUR (Hours worked) If the wage rate is $30 per hour, Jake will supply hours of work per day. additional The wage rate must be S per hour for Jake to supply 2 hours of work per day. fewer If the wage rate decreases from $30 per hour to $9 per hour, Jake will supply hours of work per day. WAGE (Dollars per hour) ca

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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11:16 Fri 10O Dec * 9 80% ... managebac-prod-china.s3.cn-north-1.amazonaws.com.cn A 22 of 46 AP Microeconomics Page 21 of 46 AP CollegeBoard Test Booklet Unit 5 Problem Set - FRQ's Include correctly labeled diagrams, if useful or required, in explaining your answers. A correctly labeled diagram must have all axes and curves clearly labeled and must show directional changes. If the question prompts you to "Calculate," you must show how you arrived at your final answer. The table below shows the short-run production function for Josh's Consulting Firm. Number of Consultants Total Product per Hour 1 21 2 43 3 66 4 88 108 6. 126 7 141 8. 151 (a) After which consultant do diminishing marginal returns begin for Josh's Consulting Firm? Explain using numbers. (b) Assume Josh's Consulting Firm sells its consulting services in a perfectly competitive market at a unit price of $2. Calculate the marginal revenue product of the fifth consultant. Show your work. (c) Josh's Consulting Firm hires…
3) A paper factory signed contract to produce 1000 reams of paper each week for a customer. The paper plant's production function is Q = 4K0.75 L0.25, where Q is output (reams produced), K is the quantity of capital rented, and L is the quantity of labor hired. Each worker is paid $10 per hour and each machine rents for $60 per hour. a. What is the MRTSLK? Demonstrate. b. Find the optimal amount of Labor and capital that is needed to produce 1,000 reams per week. c. What is the firms' total cost of producing the 1,000 reams? d. Draw a diagram of the iso-quant and the iso-cost lines and identify the optimal input combination. e. Suppose the firm needs to increase production to 1,100. Without redoing the full analyses, determine how much additional labor and capital will be needed to achieve this. (This is a one-line answer).
The marginal product of effort, a typical worker in fast-food burger joint, is one- fourth burgers per hour; that is, MPe = .25The price of a burger is $2. The figure graphs Mac’s marginal cost of effort. If Mac increases his effort by one unit per hour, the change in the burger joint’s revenue is $ per hour. That is, what is VMPe , the value of Mac ‘s marginal product of effort ? Plot the VMPe curve in the figure. Mac efficient effort e^ is the solution to what equation? Illustrate the solution in the figure. Mac efficient…
The following table contains the relationship between a number of trainers working at a new gym and the number of client's they can train. These client's represent the output of trainers. Client's pay $40 per session. A. Find the marginal product of labor (mpl) and the value of the marginal product of labor (vmpl) for each additional trainer hired and record these numbers in columns in the table. B. Premier trainers earn $200 an hour. How many trainers will the gym hire?
Suppose labor is available to a firm at a cost of $12 per hour. Also suppose that employing another hour of labor adds 5 units to output and that any amount of output can be sold for $10 per unit. An additional hour of labor would add $50 in additional revenue to the firm. (Enter your response as a whole numer.) This firm should hire more labor. Now suppose that the last hour of labor hired by the firm has a marginal product of 4 units of output. The marginal revenue product of labor is now $. (Enter your response as a whole numer.)
Paducah Slugger Company makes baseball bats out of lumber supplied to it by Acme Sporting Goods, which pays Paducah $10 for each finished bat. Paducah's only factors of production are lathe operators and a small building with a lathe. The number of bats per day it produces depends on the number of employee-hours per day, as shown in the table below. a. The wage is $15 per hour and Paducah’s daily fixed cost for the lathe and building is $50. Instructions: Complete the table below. If you are entering any negative numbers be sure to include a negative sign (−) in front of those numbers. Express marginal cost values rounded to the nearest penny (two decimal places). Q (bats per day) Number of employee-hours per day Total revenue($ per day) Total labor cost($ per day) Total cost($ per day) Profit($ per day) Marginal costper bat 0 0 — 5 1 10 2 15 4 20 7 25 11 30 16 35 22 What is the…
Angela has been working at a real wage rate of $25 per hour. Illustrate in a diagram how Bruno's decision to use more robots could affect Angela's future levels of real wage, utility, free time, and consumption. ●
1. Julie needs to hire a plumber. She is told that the cost of hiring the plumber, C, is determined by the amount of time spent on the job, t, in hours. The plumber charges a one-time fee of $30 and an hourly rate of $40. How many hours did the plumber work if Julie paid him $190? Find the value for C (total cost) when time, t =0. Write a sentence describing its meaning.
Eva runs a small bakery in the village of Roggerli. She is debating whether she should extend her hours of operation. Eva figures that her sales revenue will depend on the number of additional hours the bakery is open as shown in the table above. She would have to hire a worker for those hours at a wage rate of $12 per hour. Refer to Table 1-1. Using marginal analysis, how many hours should Eva extend her bakery's hours of operations? 2 hours 3 hours 4 hours 5 hours
Consider the following production function: q = 9LK + 6L² – Assuming capital is measured on the vertical axis and labor is measured on the horizontal axis, determine the value of the marginal rate of technical substitution when K= 30 and L= 10. MRTS = -. (Enter a numeric response using a real number rounded to two decimal places.) 20 tv MacBook Air F6 FB 10 F3 23 2$ & з 4 6 7 8 { [ E Y U P D F G J K > C V N M command option - .. .- B
4. Given the following graph, briefly respond to the questions appearing directly below this graph. Сapital A 14 10 3. Isoquant for Output = 60 C %3D 3. Isoquant for E/Output = 40 %3D 2 3 9 11 Labor a. For an output level of 40 units, calculate the marginal rate of technical substitution between points A and B. b. Also for an output level of 40 units, calculate the marginal rate of technical substitution be- tween points D and E.
You own a coffee shop and use both labor and capital to make lattes. Currently, the marginal product of labor is 50 lattes a day while the marginal product of capital is 20 lattes a day. You pay your labor $100/day, and you rent your Nuova Simonelli Appia Life Black 2 espresso machine for $25 a day. The price of a latte is $5. Are you employing your inputs effectively? If not, what would you do to increase efficiency?