Micro Economics For Today
10th Edition
ISBN: 9781337613064
Author: Tucker, Irvin B.
Publisher: Cengage,
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Question
Chapter 11, Problem 3SQP
To determine
Marginal product and marginal revenue product.
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Assume the Grand Slam Baseball Store sells $168 worth of baseball cards each day, with one employee operating the
store. The owner decides to hire a second worker, and the two workers together sell $278 worth of baseball cards. The
second worker's marginal revenue product (MRP) is. If the price per card sold is $10, the second worker's marginal
product (MP) iscards.
(Based on Chapter 2, Problem 1 of Benjamin et al., 2031) Amit has $2000 of annual non-labour income.
He has 80 hours per week that he can allocate between labour and leisure, for 80 x 52 = 4160 hours per
year. His current wage rate is $20 per hour and he chooses to work 2200 hours a year. (a) Draw a leisure -
labour diagram, clearly indicating Amit's current labour supply decision. (Your diagram should be clearly
labeled and include Amit's budget line and an indifferent curve showing his leisure and consumption of
goods and services at his optimal choice. Use the figures provided to find the y-intercept and his
consumption if he doesn't work.) (b) Amit's wage rate increases to $25 per hour. In response, he increases
his labour supply to 2300 hours. If he were "compensated" accordingly, at this new wage rate he would
be just indifferent to working 2200 hours at his original wage rate and working 2400 hours at the new
wage. Illustrate Amit's new optimal choice. Use the information…
Derive labor demand curve by using market wage levels at 14$, 12$, 10$, 8$, 7$ ?
Chapter 11 Solutions
Micro Economics For Today
Ch. 11.3 - Prob. 1YTECh. 11 - Prob. 1SQPCh. 11 - Prob. 2SQPCh. 11 - Prob. 3SQPCh. 11 - Prob. 4SQPCh. 11 - Prob. 5SQPCh. 11 - Prob. 6SQPCh. 11 - Prob. 7SQPCh. 11 - Prob. 8SQPCh. 11 - Prob. 9SQP
Ch. 11 - Prob. 10SQPCh. 11 - Prob. 11SQPCh. 11 - Prob. 1SQCh. 11 - Prob. 2SQCh. 11 - Prob. 3SQCh. 11 - Prob. 4SQCh. 11 - Prob. 5SQCh. 11 - Prob. 6SQCh. 11 - Prob. 7SQCh. 11 - Prob. 8SQCh. 11 - Prob. 9SQCh. 11 - Prob. 10SQCh. 11 - Prob. 11SQCh. 11 - Prob. 12SQCh. 11 - Prob. 13SQCh. 11 - Prob. 14SQCh. 11 - Prob. 15SQCh. 11 - Prob. 16SQCh. 11 - Prob. 17SQCh. 11 - Prob. 18SQCh. 11 - Prob. 19SQCh. 11 - Prob. 20SQ
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