The Labor MarketThe following two graphs show the labor market condition in an industry of a hypotheticalcountry. The firms in this country are perfectly competitive in the output market. The labormarket is also perfectly competitive. Assume that each workday has 8 hours in it and there are20 workdays in a month. Now let's do some number crunching.Demand Side of the MarketThe following graph shows marginal product of labor (MPL) faced by an individual firm. Forexample, it shows that the first worker hired will produce 110 units of the product. The secondworker will produce 100 units. There are 1,000 identical firms in the industry. The market priceof the product produced is $40 per unit.MPL130120110100908070605040302010001234.56791011Labor (Persons)

Step 1: Understanding the Scenario: We're analyzing the labor market for a hypothetical industry in…

Answered: The Labor Market The following two…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Explain how the marginal cost of labor (MCL) curves differ between a firm in a perfectly competitive input market and a firm in a non-perfectly competitive input market, and illustrate on a graph.
The Zippy Paper Company has no control over either the price of paper or the wage it pays its workers. The following table shows the relationship between the number of workers Zippy hires, total output, marginal product, and marginal revenue product of labor, with all other inputs being held constant. Assume that the selling price is $10 per box of paper. Labor Input Total Output Marginal Product Marginal Revenue Product Price = $10 (Workers per day) (Boxes of paper per day) (Boxes of paper per day) (Dollars) 0 0 14 2 26 36 44 5 50 AAAAAA 14 $140 12 $120 10 $100 8 $80 64 $60 $40 6 54 If the wage rate is $50.00 per day, Zippy will hire workers. Suppose that the workers in this industry have unionized and have collectively bargained for a wage of $70.00. As a result of this collective bargaining agreement, Zippy will the number of workers it hires to hire workers.
Use the following information to answer the following questions: Mickey L. Douglas, owner of MLD Incorporated, knows that the marginal product of labor (MPL) for his workers can be defined as follows: MPL = 32 - L The total output a given level of workers can produce is found as: Q=32L-1/2 L² He also knows that the price of his output is $3. His profits can be found as: Profit=(PxQ)-(W x L) What wage would be required to allow Mickey to hire the twenty-fifth worker? O $21 O $7 O $125 O $3 $25
In the short run, a tool manufacturer has a fixed amount of capital. Labor is a variable input. The cost and output structure that the firm faces is depicted in the table below. Assume the product price is $4. Calculate the marginal revenue product and the marginal resource cost, and then complete the table. Instructions: Enter your answers as whole numbers. Quantity of Labor Marginal Product Marginal Revenue Hourly Wage Rate ($) Marginal Resource Total Product Total Labor Product ($) Cost ($) (Labor) Cost ($) 10 400 5 50 es 11 420 20 8. 88 12 438 18 11 132 13 454 16 14 182 14 468 14 17 238 15 480 12 20 300 The equilibrium wage rate ($) = The equilibrium level of labor use = workers
Profit maximization Suppose that the market wage for blueberry pickers is $80 per worker per day, and the price of blueberries is $15 per pound. On the following graph, use the blue points (circle symbol) to plot Blewitt's labor demand curve when the output price is $15 per pound. Note: Remember to plot each point between the two integers. For example, when the number of workers increases from 0 to 1 , the value of the marginal product of for the first worker should be plotted with a horizontal coordinate of 0.5 , the value halfway between 0 and 1 . Line segments will automatically connect the points. At the given wage and price level, Blewitt's should hire At the given wage and price level, Blewitt's should hire Suppose that the price of blueberries increases to $18 per pound, but the wage rate remains at $80. On the previous graph, use the purple points (diamond symbol) to plot Blewitt's labor demand curve when the output price is $18 per pound. Now Blewitt's…
I need help with #10 please
The following table shows different numbers of workers hired by Jedi Star, a competitive firm producing light-sabers, and corresponding levels: output. Suppose that Jedi Star sells its product at $1,000 per light-saber and hires its workers in a competitive labor market paying the same rate of $6,000 to all workers. Total Product Number of light-saber (Number of light-sabers per makers 0 1 day) Complete the following table by calculating Jedi Star's marginal product, marginal revenue product, and marginal profit. Marginal Revenue Product (Thousands of Dollars) Marginal Product (Number of light- sabers) 0 14 23 26 36 4 44 5 50 6 54 7 56 AAAAAAA Marginal Profit (Thousands of Dollars)
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Answer the question on the basis of the following output data for a firm. Assume that the amounts of all nonlabor resources are fixed. Number of Workers Units of Output 1 2 3 4 25 60 103 160 210 240 6. Average product is at a maximum when Multiple Choice four worker(s) is/are hired. three worker(s) is/are hired. five worker(s) is/are hired. six worker(s) is/are hired.
Suppose the local economy experiences an influx of both skilled and unskilled workers, what will happen to prices of goods and services? Group of answer choices Since this increases the supply of labor, prices and wages both decrease. Since this increases the demand for labor, prices and wages both increase. Since this decreases the supply of labor, prices and wages both decrease. Since this increases the marginal product of labor, prices and wages both decrease. A worker on a Texas oil rig is likely to earn _______ than a reception because _________. Group of answer choices less; the job has unattractive characteristics. more; the job is more fun. more; the job is more prestigious. more; the job is more dangerous. please answer two questions
Use the graph to answer the question that follows. Based on the chart above, if the product sells at a price of $10 per unit, what is the marginal revenue product of the seventh unit of labor? 0 $6.50 About $5 About $25 Indeterminate
Consider the Labor Economics Question. This will provide insight into the idea of the optimal number of workers and the value of the marginal product of labor. If wages in the restaurant is $16.80 per hour and the price of a Hamburger is $8.30 and the production function for the workers is: Q = 11L – 0.25L2 How many workers should Your Restaurant employ during the lunch hour to maximize profits? 1 Point (note—the value of the marginal product of labor and the marginal revenue product are the same) We maximize profits which are total revenues less total costs:

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