the housing construction industry. Assume the industry is perfectly competitive in input and output markets. Suppose that, through collective bargaining, a labor union successfully negotiates an industry-wide wage for various kinds of labor (electricians, plumbers, and so on). In particular, it succeeds in negotiating a wage increase for carpenters from $12 to $16 per hour The following graph shows the demand for labor and the supply of labor for the entire industry. On the following graph, use the purple points (diamond symbol) to plot the new industry supply curve. Then use the black point (plus symbol) to show the effect of the union negotiations on the quantity of labor demanded in the industry. WAGE RATE Supply mand + New supply of labor *

the housing construction industry. Assume the industry is perfectly competitive in input and output markets. Suppose that, through collective bargaining, a labor union successfully negotiates an industry-wide wage for various kinds of labor (electricians, plumbers, and so on). In particular, it succeeds in negotiating a wage increase for carpenters from $12 to $16 per hour The following graph shows the demand for labor and the supply of labor for the entire industry. On the following graph, use the purple points (diamond symbol) to plot the new industry supply curve. Then use the black point (plus symbol) to show the effect of the union negotiations on the quantity of labor demanded in the industry. WAGE RATE Supply mand + New supply of labor *

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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4. Profit maximization Consider Blewitt's Farm, a small blueberry grower relative to the size of the market whose production has no impact on wages and prices. The following table presents Blewitt's production schedule for blueberries: Labor Output (Number of workers) (Pounds of blueberries) 0 0 1 2 3 4 5 сл 20 38 54 68 80 Suppose that the market wage for blueberry pickers is $200 per worker per day, and the price of blueberries is $13 per pound.
Consider the competitive market for dress shirts. The following graph shows the marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves for a typical firm in the industry. For each price in the following table, use the graph to determine the number of shirts this firm would produce in order to maximize its profit. Assume that when the price is exactly equal to the average variable cost, the firm is indifferent between producing zero shirts and the profit-maximizing quantity. Also, indicate whether the firm will produce, shut down, or be indifferent between the two in the short run. Lastly, determine whether it will make a profit, suffer a loss, or break even at each price.
In 2015, the average variable cost of producing wheat in Canada was close to $5 per bushel. Suppose that technological progress reduces the average variable cost to $2 per bushel. Use a figure to show how this change affects the supply curve of a typical competitive firm and the supply curve of all the firms in the market. 1.) Using the line drawing tool, graph the supply curve for a typical competitive firm when the average variable cost of producing wheat is $5 per bushel. Label this 's'. 2) Using the line drawing tool, graph the supply curve for a typical competitive firm when the average variable cost of producing wheat is $2 per bushel. Label this 's Be sure to start both of your supply curves at the vertical axis. Carefully follow the instructions above, and only draw the required objects. p. 3. per bushel of wheat 10- 2 4 Q. bushels of wheat 10 odb
Stephanie produces earrings. She sells each pair of earrings for $5. The table below shows how many pairs of earrings can be produced, depending on the number of workers Stephanie hires. Fill in the "Total Revenue" and "Marginal Revenue Product" columns using the information given. Assume this is a perfectly competitive market. Instructions: Enter your answers as a whole number. Stephanie's Earring Shop and Revenues Labor Total Product (pairs of (workers) 8 1 2 3 4 5 6 7 earrings) 0 28 44 58 71 82 90 95 Marginal Product (pairs of earrings) 28 16 14 13 11 8 5 Price (dollars) $5 5 5 5 5 5 5 5 Total Revenue (dollars) $0 Marginal Revenue Product (dollars) $
The following graph plots daily cost curves for a firm operating in the competitive market for demin overalls. Hint: Once you have positioned the rectangle on the graph, select a point to observe its coordinates. PRICE (Dollars per overalls) 50 10 10 5 0 MC 2 ATC 8 18 QUANTITY (Thousands of overallises per day) AVC 10 20 Profit or Loss In the short run, given a market price equal to $15 per overalls, the firm should produce a daily quantity of On the preceding graph, use the blue rectangle (circle symbols) to fill in the area that represents profit or loss of the firm given the market price of $15 and the quantity of production from your previous answer. Note: In the following question, enter a positive number regardless of whether the firm earns a profit or incurs a loss. The rectangular area represents a short-run thousand per day for the firm. $ overallses.
PQ 19.09 (and PQ 19.06) At a fish farm, which is operating in a perfectly competitive market, Kendall, the owner of this farm pays their workers $120 per day. There are 7 workers employed by Kendall. At their current level of production, the marginal product of the seventh worker is 8 kilograms of fish per day, and the marginal product of the eight worker would be 7 kilograms of fish per day. The market price of fish is $22 per kilogram. If Kendall wants to maximize profit they will Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a hire more workers. b hire less workers. not change the amount of workers.
Consider a profit-maximizing cotton candy firm that operates in a perfectly competitive output and labor market. Suppose there is a decrease in the price of good X, and the cross-price elasticity of demand for cotton candy with respect to good X is positive. How does this impact: a. the wage paid to cotton candy workers b. the amount of labor hired by the cotton candy firm? Explain and show using well-labelled graphs.
You are a labor economist trying to evaluate whether the labor market for computer scientists is competitive or monopsonistic. Based on previous research, you know that the production function for computers depends only on labor input: Y = -0.5L^2 + 10L; where Y is the output of computers and L is the quantity of labor used. The price of a computer is p = 2. You also know that the labor supply, as a function of the wage, for computer scientists is the following, where w is the wage per unit of labor: L = -10 + w. a. Find the equilibrium wages and employment (wc; Lc) that would prevail if the market for computer scientists were competitive. [Remember that a competitive firm takes the wage as given : that is, it assumes that the quantity of workers that it hires has no effect on the price of the next worker. (Of course, the equilibrium wage must equate demand and supply)].
Stephanie produces earrings. She sells each pair of earrings for $8. The table below shows how many pairs of earrings can be produced, depending on the number of workers Stephanie hires. Fill in the "Total Revenue" and "Marginal Revenue Product" columns using the information given. Assume this is a perfectly competitive market. Instructions: Enter our answers as a whole number. Stephanie’s Earring Shop and Revenues Labor Total Product Marginal Product Price Total Revenue Marginal Revenue Product (workers) (pairs of earrings) (pairs of earnings) (dollars) (dollars) (dollars) 0 0 - $8 $0 - 1 25 25 8 ____ $ _____ 2 38 13 8 _____ _____ 3 49 11…
The following diagram provides the demand for labour (DL) of a remote gold mine, and the local community's supply of labour (SL). The mining company has a monopsony in the local labour market. W ($ per week) 2000 1500 1000 500 0 L (miners) 5 10 15 20 25 30 1. Use the information in the diagram to provide an equation for the demand for labour function and the supply of labour function. Show your work in the space provided. 0 SL 2. From the information in the diagram, estimate the mine's expenditure on labour (E) function its marginal expenditure on labour (ME) function. Show your work in the space provided. 3. The profit maximizing monopsonist will Q = miners and pay them a wage w = $_ week. Show your work in the space provided and in the above diagram. 4. The Dead-weight-loss from monopsony is DWL = $_ this paper and on the above diagram. Show your work on the back of per
The next 3 questions refer to the following: The table below shows a competitive firm's short-run production function. Labour is the firm's only variable input, and market price for the firm's product is $9 per unit. Labour Output 410 590 720 790 835 855 3 A W 4 5 6 7 8 The 5th unit of labour adds $ to the firm's total revenue. If the wage rate is $190, the firm will employ units of labour. If market price for the firm's product decreases to $3, at the same wage rate of $190 the firm will earn a profit of $