Economics: Principles, Problems, & Policies (McGraw-Hill Series in Economics) - Standalone book
20th Edition
ISBN: 9780078021756
Author: McConnell, Campbell R.; Brue, Stanley L.; Flynn Dr., Sean Masaki
Publisher: McGraw-Hill Education
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Question
Chapter 15.3, Problem 2QQ
To determine
How Marginal productivity of labor is related to the demand for labor.
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Students have asked these similar questions
Explain it correctly. All subparts a, b, c and d.
The supply of labor is determined by the:
marginal product of labor.
opportunity cost of hiring labor.
number of workers.
All of these are true.
1.
The market price for tomatoes is $2/pound. Lynn is too small to influence
the price of tomatoes. Her tomato (short-run) production function is given by q= L3
where L measures hours of labor and q measures pounds of tómatoes.
(a)
demand curve for labor.
Lynn hires labor from a competitive labor market. Find her short run
(b)
elastic than her short-run demand for labor? Explain your answer.
Would you expect Lynn's long-run demand for labor to be more or less
Chapter 15 Solutions
Economics: Principles, Problems, & Policies (McGraw-Hill Series in Economics) - Standalone book
Ch. 15.3 - Prob. 1QQCh. 15.3 - Prob. 2QQCh. 15.3 - Prob. 3QQCh. 15.3 - Prob. 4QQCh. 15.A - Prob. 1ADQCh. 15.A - Prob. 2ADQCh. 15.A - Prob. 3ADQCh. 15.A - Prob. 4ADQCh. 15.A - Prob. 5ADQCh. 15.A - Prob. 1ARQ
Ch. 15.A - Prob. 2ARQCh. 15.A - Prob. 3ARQCh. 15.A - Prob. 4ARQCh. 15.A - Prob. 1APCh. 15.A - Prob. 2APCh. 15 - Prob. 1DQCh. 15 - Prob. 2DQCh. 15 - Prob. 3DQCh. 15 - Prob. 4DQCh. 15 - Prob. 5DQCh. 15 - Prob. 6DQCh. 15 - Prob. 7DQCh. 15 - Prob. 8DQCh. 15 - Prob. 9DQCh. 15 - Prob. 10DQCh. 15 - Prob. 1RQCh. 15 - Prob. 2RQCh. 15 - Prob. 3RQCh. 15 - Prob. 4RQCh. 15 - Prob. 5RQCh. 15 - Prob. 6RQCh. 15 - Prob. 7RQCh. 15 - Prob. 1PCh. 15 - Prob. 2PCh. 15 - Prob. 3PCh. 15 - Prob. 4PCh. 15 - Prob. 5P
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Similar questions
- XYZ Co. operates in a competitive market. Its production function is q = Lα Kβ . The firm takes the wage, rental rate and price as given. a) Derive the firm's conditional labor and capital demand functions. b) How does the firm react to an increase in the wage rate? c) Derive the firm's cost function.arrow_forwarda) Graph the TP, MP and AP data below. Clearly identify the 3 stages of production by drawing dotted lines vertically at the appropriate labor levels (increasing returns, decreasing returns, negative returns). productarrow_forwardA manager hires labour and rents capital equipment in a very competitive market. Currently the wage rate is $12 per hour and capital is rented at $8 per hour, whereas the marginal product of labour is 60 units of output per hour and the marginal product of capital is 45 units of output per hour. Show if the firm is using the cost-minimizing combination of labour and capital and give appropriate advice if necessary.arrow_forward
- Firms will hire additional workers as long as the wage: a) is less than the marginal product of labor. b) equals the marginal product of labor. c) is greater than the marginal product of labor. d) is less than the value of the marginal product of labor.arrow_forwardIn the short run, a tool manufacturer has a fixed amount of capital. Labor is a variable input. The cost and output structure that the firm faces is depicted in the table below. Assume the product price is $4. Calculate the marginal revenue product and the marginal resource cost, and then complete the table. Instructions: Enter your answers as whole numbers. Quantity of Labor Marginal Product Marginal Revenue Hourly Wage Rate ($) Marginal Resource Total Product Total Labor Product ($) Cost ($) (Labor) Cost ($) 10 400 5 50 es 11 420 20 8. 88 12 438 18 11 132 13 454 16 14 182 14 468 14 17 238 15 480 12 20 300 The equilibrium wage rate ($) = The equilibrium level of labor use = workersarrow_forward1.XYZ Co. operates in a competitive market. Its production function is q = LαKβ. The firm takes the wage, rental rate and price as given. a) Derive the firm's conditional labor and capital demand functions. b) How does the firm react to an increase in the wage rate? c) Derive the firm's cost function.arrow_forward
- V3 given froduction function F=K^1/4 L^1/16 price of capital and labor are v and w 1)find short run cost function with quantity X, and that there are Y amount of capital purchased 2)find the long run contigent demand for capital and laborarrow_forwardRefer to the table below. Diminishing marginal productivity begins when the: A). third worker is hired. B). fourth worker is hired. C). fifth worker is hired. D). sixth worker is hired.arrow_forwardA firm's demand for labor curve is also called its marginal valuation curve. marginal benefit of labor curve. marginal factor cost of labor curve. marginal revenue product of labor curve.arrow_forward
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