ECON MICRO (with ECON MICRO Online, 1 term (6 months) Printed Access Card) (New, Engaging Titles from 4LTR Press)
5th Edition
ISBN: 9781305631946
Author: William A. McEachern
Publisher: Cengage Learning
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Question
Chapter 11, Problem 5.7P
To determine
(a)
The marginal revenue product for each additional unit of labor.
Concept Introduction:
Marginal revenue: This refers to the market value of an additional unit of output.
To determine
(b)
The demand curve for labor is to be constructed.
Concept Introduction:
Marginal revenue: This refers to the market value of an additional unit of output.
Demand for labor: This is a concept that defines the amount of demand for labor that an economy or firm is willing to employ at a given point of time.
To determine
(c)
The amount of labor hired when the wage rate is $15 per hour.
Concept Introduction:
Marginal revenue: This refers to the market value of an additional unit of output.
Demand for labor: This is a concept that defines the amount of demand for labor that an economy or firm is willing to employ at a given point of time.
To determine
(d)
The firm’s total revenue is to be compared with the total amount paid for labor.
Concept Introduction:
Marginal revenue: This refers to the market value of an additional unit of output.
Demand for labor: This is a concept that defines the amount of demand for labor that an economy or firm is willing to employ at a given point of time.
To determine
(e)
The changes in the answers to part b and c with an increase in the price of output to $5 per unit.
Concept Introduction:
Marginal revenue: this refers to the market value of an additional unit of output.
Demand for labor: this is a concept that defines the amount of demand for labor that an economy or firm is willing to employ at a given point of time.
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Consider an economy that exhibits both population growth (L grows at rate n) and
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[5 marks]
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[6 marks]
A firm faces the following production function,
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(1)
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(2)
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capital the firm should use.
[3 marks]
(b) Referring to your result from part (a), comment on what happens to K* when
each of the following variables change (holding other variables constant),
(i)
The measure of technology (A) falls
(ii)
The depreciation rate (8) increases
(iii)
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[2 marks]
[2 marks]
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Chapter 11 Solutions
ECON MICRO (with ECON MICRO Online, 1 term (6 months) Printed Access Card) (New, Engaging Titles from 4LTR Press)
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