The marginal product of labor (measured in units of output) for a certain firm is: MPN = A(100-N), where A measures productivity and N is the number of labor hours used in production. The price of output is $2 per unit. (Round all answers to two decimal places.) If A = 1 and the nominal wage is $80, the quantity of labor demanded will be 60 If A = 1 and the nominal wage is $100, the quantity of labor demanded will be 50 Assume that A is equal to 1. Using the line drawing tool, draw the labor demand curve from 0 to 100 units of labor. Properly label this line. Carefully follow the instructions above, and only draw the required objects. If A = 1, the price of output is $4, and the supply of labor is fixed at 85, the equilibrium real wage is 15, and the equilibrium nominal wage is $60. Real Wage, W/P 220- 200- 180- 160- 140- 120- 100- 80- 60- 40- 20- 0 0 (10,0) 10 20 30 40 50 60 70 80 90 100 110 120 Labor, N

The marginal product of labor (measured in units of output) for a certain firm is: MPN = A(100-N), where A measures productivity and N is the number of labor hours used in production. The price of output is $2 per unit. (Round all answers to two decimal places.) If A = 1 and the nominal wage is $80, the quantity of labor demanded will be 60 If A = 1 and the nominal wage is $100, the quantity of labor demanded will be 50 Assume that A is equal to 1. Using the line drawing tool, draw the labor demand curve from 0 to 100 units of labor. Properly label this line. Carefully follow the instructions above, and only draw the required objects. If A = 1, the price of output is $4, and the supply of labor is fixed at 85, the equilibrium real wage is 15, and the equilibrium nominal wage is $60. Real Wage, W/P 220- 200- 180- 160- 140- 120- 100- 80- 60- 40- 20- 0 0 (10,0) 10 20 30 40 50 60 70 80 90 100 110 120 Labor, N

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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1. Consider a static labour supply model for an individual. Assume that the person works a positive number of hours. Assume that the utility function is of the following form: U=x0.5 +8(T-h)(0.5) where x is consumption and his hours of work, and 8 is a parameter of the utility function. The person is paid a wage of w for each hour worked. The person has no other source of income other than employment earnings. Assume that the price of x equals 1. a) Specify the utility maximization problem, write down the Lagrange function, and solve for the first order conditions. b) Solve for the MRS condition between consumption and hours of work. c) Assume that 8=2 if the person has a child living at home, and 8=1 otherwise. Explain (and either show mathematically or graphically) how this will affect the optimal number of hours of work of the person.
= $30 and wage rate Let the production function be given by: q = 10(L^2)K, with rental rate v W = $20. 1. How much K and L are employed to produce 11,250 units of output? 2. Suppose that the firm wants to increase output to 19, 440 units of output, now how much K and Lare employed to produce with minimize cost? 3. Suppose that in the short run the amount of capital is fixed at K = 10, what is the firm short run fixed cost? 4. Suppose that in the short run the amount of capital is fixed at K = 10, what is the short run total cost of producing 900 units of output?
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The market for plumbers in Boston is currently in equilibrium. Labor supply is given by Ls = 3 x W and labor demand is given by Ld = 45 - W (where L = quantity of workers, Ls quantity of workers supplied, Ld = quantity of workers demanded, and W = wage). The plumbers have just unionized and have negotiated a wage of $25 for all plumbers in Boston. How many plumbers do you expect to be unemployed as the result of this change? Please round your answer to the nearest integer. %3D %3D %3D
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Mainly concerned with how to answer part b.
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