Topic 5 Assignment Consumption (Dollars) 2000 1800 1600 W=$16 1400 1200 W=$12 1000 800 W=$8 600 400 200 E ° 0 10 20 30 40 50 60 70 80 90 100 Leisure (Hours) ? If Valerie's labor-supply curve is upward sloping when the wage is between $8 and $12 per hour, then point optimum at a wage of $12 per hour. Given this optimum at a wage of $12 per hour, an optimum of point supply curve when the wage is between $12 and $16 per hour. on the graph represents a possible generates a backward-sloping labor-

Topic 5 Assignment Consumption (Dollars) 2000 1800 1600 W=$16 1400 1200 W=$12 1000 800 W=$8 600 400 200 E ° 0 10 20 30 40 50 60 70 80 90 100 Leisure (Hours) ? If Valerie's labor-supply curve is upward sloping when the wage is between $8 and $12 per hour, then point optimum at a wage of $12 per hour. Given this optimum at a wage of $12 per hour, an optimum of point supply curve when the wage is between $12 and $16 per hour. on the graph represents a possible generates a backward-sloping labor-

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

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. ●
Suppose that this conveyor-manufacturing firm has another location and would like you to evaluate the input mix decisions at this new location. Here is all you know about the newlocation. The marginal rate of technical substitution is currently 0.5. The marginal product of labor at its target level of output is 60 rollers per hour. What is the marginal product of capital? Ifthe rental rate for capital is $24 per hours at this location and the wage paid to labor is $12 per hour, could this location be minimizing the costs of producing its target level of output? Explain briefly.
Wage Rate D₁ D₂ Quantity of Labor Refer to the above graph. What will shift D₁ to D₂? O An increase in the price of a substitute input (if the output effect is greater than the substitution effect) O A decrease in the price of a substitute input (if the substitution effect is greater than the output effect) O A decrease in the price of a substitute input (if the output effect is greater than the substitution effect) An increase in the price of a complementary resource
assume the following labor supply curves: 1. N = C + .64 W -2.33 I + 0.08 K 2. N = C + 1.33 W - .59 I - .28 K 3. N = C - 1.11 W - .59I - .28K a. Determine whether leisure is inferior in the 2nd labor supply curve. b. which if any of the above three equations represent back-bending labor supply curves? justify your answer. c. which if any of the above three labor supply curves is inconsistent with theory? justify your answer.
Need help with this. Thanks! Kyoko currently earns a_________(nominal or real) wage of $12.00 per hour; in other words, the amount of her paycheck each week is $12.00 per hour times the number of hours she works. Suppose the price of milk is $2.50 per gallon; in this case, Kyoko's_________(nominal or real) wage, in terms of the amount of milk she can buy with her paycheck, is__________ gallons of milk per hour. When workers and firms negotiate compensation packages, they have expectations about the price level (and changes in the price level) and agree on a_______(nominal or real) wage with those expectations in mind. If the price level turns out to be higher than expected, a worker's________(nominal or real) wage is_______(higher or lower) than both the worker and employer expected when they agreed to the wage. Kyoko and her employer both expected inflation to be 4% between 2012 and 2013, so they agreed, in a two-year contract, that she would earn $12.00 per hour in 2012 and…
Becky currently earns anominal wage of $12.00 per hour; in other words, the amount of her paycheck each week is $12.00 per hour times the number of hours she works. Suppose the price of milk is $2.40 per gallon; in this case, Becky'sreal wage, in terms of the amount of milk she can buy with her paycheck, is gallons of milk per hour. When workers and firms negotiate compensation packages, they have expectations about the price level (and changes in the price level) and agree on a wage with those expectations in mind. If the price level turns out to be higher than expected, a worker's wage is than both the worker and employer expected when they agreed to the wage. Becky and her employer both expected inflation to be 3% between 2012 and 2013, so they agreed, in a two-year contract, that she would earn $12.00 per hour in 2012 and $12.36 per hour in 2013. However, suppose inflation between 2012 and 2013 actually turned out to be 6%, not 3%. For example,…
Use the figure below to explain the impacts of a earning that is below the equilibrium earnings of $40,000 will have on the Alaskan Labor Market and Construction of the Oil Pipeline? Labor Labor market equilibrium point Earnings 20,000 50,000 35,000
4. Winona has 80 hours to divide between leisure and labor. Her utility function is u(r,c) = f(r) + c, when r represents hours of leisure, c represents dollars of consumption, and fis strictly concave. Winona's wage is wo = $15/hr. initially, then it rises to wi = $20/hr. (i) Explain what happens to Winona's labor supply when the wage rises, and why. (ii) Explain how the answer to (i) would change if Winona were to win a lottery.
Suppose that John is a high-school drop out with a market wage of $8. a. Give two reasons why John' MRPL might increase if the firm pays an efficiency wage? b. The relationship between John's wage and MRPL is given in the table below. What is the efficient wage for John? Wage ($/hour) MRPL ($/hour) $8 $8.00 $9 $9.50 $10 $11.00 $11 $12.25 $12 $13.00 $13 $13.50 $14 $14.00
Given the production function y= f(x1,x2)=x11/3x21/3. The amount of x2 is equal to 216 in the short run. Calculate the factor demand function Given the product price (P) is 6 and the price of factor 1 (w1) is 12, calculate the optimum amount of factor 1. Show your results on a graph.
Given the production function y= f(x1,x2)=x11/3x21/3. The amount of x2 is equal to 216 in the short run. Calculate the factor demand function Given the product price (P) is 6 and the price of factor 1 (w1) is 12, calculate the optimum amount of factor 1. Show your results on a graph. What will happen to the optimum level of factor 1 when both the price of the good and the price of factor 1 increase simultaneously?
38. For the production function y = 3x₁ + 4x2 , which of the two inputs is more productive when x₁ is 1 and x₂ is 10 ? O. X1 O. X2 O. neither ; for this situation , they have equal marginal products O. cannot tell from the above information 39. Given the production function y = 3x₁ + 4x2 , what is the marginal rate of technical substitution of x₁ for x₂ ( MRSx1x2 ) when x₁ is 5 and x₂ is 5 ? O. -0.75 O. -x1 / 5 O. 5 O. -5