Microeconomics
13th Edition
ISBN: 9781337617406
Author: Roger A. Arnold
Publisher: Cengage Learning
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Chapter 14, Problem 2QP
To determine
Explain the relationship between
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4. Profit maximization
Consider Blewitt's Farm, a small blueberry grower relative to the size of the market whose production has no impact on wages and prices. The
following table presents Blewitt's production schedule for blueberries:
Labor
Output
(Number of workers) (Pounds of blueberries)
0
0
1
18
2
34
3
48
4
60
5
70
Suppose that the market wage for blueberry pickers is $170 per worker per day, and the price of blueberries is $12 per pound.
On the following graph, use the blue points (circle symbol) to plot Blewitt's labor demand curve when the output price is $12 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.
WAGE (Dollars per worker)
300
270
240
210
180
150
120
90
90
60
30
0
0
1
2
3
LABOR (Number…
If Canadian interest rates fall below the world interest rate, the Canadian dollar will likely ______, causing net exports to ______, which shifts the aggregate demand curve ______.a) appreciate; fall; leftb) appreciate; rise; rightc) depreciate; fall; leftd) depreciate; rise; right
If everything becomes cheaper causing the price level to fall, then ______ and interest rates will ______.a) money demand shifts left; fallb) money demand shifts right; risec) money supply shifts left; rised) money supply shifts right; fall
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