The reason for a higher level of wage in the developed country.

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Answer 1

Question

Chapter 17, Problem 1DQ

To determine

The reason for a higher level of wage in the developed country.

Expert Solution & Answer

Explanation of Solution

In general, the wage level in the developed country is higher than the other country. The main reason for this increase in the level of wage is the higher level of labor productivity. Wage is determined by the marginal productivity of the labor. The output per worker is higher in the developed country. The reason for this high productivity is abundant natural resource relative to the labor size and the capital per worker is very high. The developed country uses advance technology, provides trainings. These factors lead to an increase in the marginal productivity of the labor that causes an increase in the wage level.

Economics Concept Introduction

Concept introduction:

Marginal productive wage theory: The marginal productive wage theory states that the wage of the labor should be equal to the marginal productivity of the labor.

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Students have asked these similar questions

Suppose that marginal product doubled while product price tripled in the table belo Marginal Marginal Product (MP) Units of Total Product Product Price | Total Revenue Revenue Resource (Output) Product $2 $0 1 7 7 2 14 $14 2 13 6. 2 26 12 3 18 2 36 10 4 22 2 44 8 25 50 6 27 2 2 54 4 7 28 1 56 LO

You are an employer seeking to fill a vacant position on an assembly line. Are you more concemed with the average product of labor or the marginal product of labor for the last person hired? O A. The marginal product of labor because to maximize profits, you will want to hire labor up to but not exceeding the point where labor begins to experience diminishing marginal returns. O B. The average product of labor because productivity is maximized when average product is maximized This determines the output where revenue and profit are maximized. O C. The average product of labor because to maximize profits, you will want to hire labor up to but not exceeding the point where labor begins to experience diminishing marginal returns O D. The marginal product because it measures the effect the last person hired has on output, or total product. This helps determine the revenue generated by hiring an another worker, which can be compared with the cost of hiring an another worker

The table below shows your production function relating output per number of hired workers (assume no changes to the capital and size of the convenient store. Use the given information to find the Marginal Product of Labor. Workers Total Output 0 0 1 2 3 4 LO 5 90 149 182 197 202 Marginal Product A OHire a number of workers where marginal product is positive OHire a number of workers where marginal product is negative OHire the number of workers where marginal product is maximized — ← What should determine the number of workers to hire if your goal is to maximize efficiency? OHire as many employees as possible OHire the minimum number of workers

Answer 2

Question

Chapter 17, Problem 1DQ

To determine

The reason for a higher level of wage in the developed country.

Expert Solution & Answer

Explanation of Solution

In general, the wage level in the developed country is higher than the other country. The main reason for this increase in the level of wage is the higher level of labor productivity. Wage is determined by the marginal productivity of the labor. The output per worker is higher in the developed country. The reason for this high productivity is abundant natural resource relative to the labor size and the capital per worker is very high. The developed country uses advance technology, provides trainings. These factors lead to an increase in the marginal productivity of the labor that causes an increase in the wage level.

Economics Concept Introduction

Concept introduction:

Marginal productive wage theory: The marginal productive wage theory states that the wage of the labor should be equal to the marginal productivity of the labor.

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Answer 3

Question

Chapter 17, Problem 1DQ

To determine

The reason for a higher level of wage in the developed country.

Expert Solution & Answer

Explanation of Solution

In general, the wage level in the developed country is higher than the other country. The main reason for this increase in the level of wage is the higher level of labor productivity. Wage is determined by the marginal productivity of the labor. The output per worker is higher in the developed country. The reason for this high productivity is abundant natural resource relative to the labor size and the capital per worker is very high. The developed country uses advance technology, provides trainings. These factors lead to an increase in the marginal productivity of the labor that causes an increase in the wage level.

Economics Concept Introduction

Concept introduction:

Marginal productive wage theory: The marginal productive wage theory states that the wage of the labor should be equal to the marginal productivity of the labor.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 17, Problem 1DQ

To determine

The reason for a higher level of wage in the developed country.

Expert Solution & Answer

Explanation of Solution

In general, the wage level in the developed country is higher than the other country. The main reason for this increase in the level of wage is the higher level of labor productivity. Wage is determined by the marginal productivity of the labor. The output per worker is higher in the developed country. The reason for this high productivity is abundant natural resource relative to the labor size and the capital per worker is very high. The developed country uses advance technology, provides trainings. These factors lead to an increase in the marginal productivity of the labor that causes an increase in the wage level.

Economics Concept Introduction

Concept introduction:

Marginal productive wage theory: The marginal productive wage theory states that the wage of the labor should be equal to the marginal productivity of the labor.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 17, Problem 1DQ

To determine

The reason for a higher level of wage in the developed country.

Expert Solution & Answer

Explanation of Solution

In general, the wage level in the developed country is higher than the other country. The main reason for this increase in the level of wage is the higher level of labor productivity. Wage is determined by the marginal productivity of the labor. The output per worker is higher in the developed country. The reason for this high productivity is abundant natural resource relative to the labor size and the capital per worker is very high. The developed country uses advance technology, provides trainings. These factors lead to an increase in the marginal productivity of the labor that causes an increase in the wage level.

Economics Concept Introduction

Concept introduction:

Marginal productive wage theory: The marginal productive wage theory states that the wage of the labor should be equal to the marginal productivity of the labor.

Answer 6

Chapter 17, Problem 1DQ

To determine

The reason for a higher level of wage in the developed country.

Expert Solution & Answer

Explanation of Solution

In general, the wage level in the developed country is higher than the other country. The main reason for this increase in the level of wage is the higher level of labor productivity. Wage is determined by the marginal productivity of the labor. The output per worker is higher in the developed country. The reason for this high productivity is abundant natural resource relative to the labor size and the capital per worker is very high. The developed country uses advance technology, provides trainings. These factors lead to an increase in the marginal productivity of the labor that causes an increase in the wage level.

Economics Concept Introduction

Concept introduction:

Marginal productive wage theory: The marginal productive wage theory states that the wage of the labor should be equal to the marginal productivity of the labor.

Answer 7

Chapter 17, Problem 1DQ

To determine

The reason for a higher level of wage in the developed country.

Answer 8

Expert Solution & Answer

Explanation of Solution

In general, the wage level in the developed country is higher than the other country. The main reason for this increase in the level of wage is the higher level of labor productivity. Wage is determined by the marginal productivity of the labor. The output per worker is higher in the developed country. The reason for this high productivity is abundant natural resource relative to the labor size and the capital per worker is very high. The developed country uses advance technology, provides trainings. These factors lead to an increase in the marginal productivity of the labor that causes an increase in the wage level.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Economics Concept Introduction

Concept introduction:

Marginal productive wage theory: The marginal productive wage theory states that the wage of the labor should be equal to the marginal productivity of the labor.

Answer 12

Ch. 17.3 - Prob. 1QQ Ch. 17.3 - Prob. 2QQ Ch. 17.3 - Prob. 3QQ Ch. 17.3 - Prob. 4QQ Ch. 17.A - Prob. 1ADQ Ch. 17.A - Prob. 2ADQ Ch. 17.A - Prob. 3ADQ Ch. 17.A - Prob. 4ADQ Ch. 17.A - Prob. 5ADQ Ch. 17.A - Prob. 1ARQ

The reason for a higher level of wage in the developed country.

Concept explainers

The reason for a higher level of wage in the developed country.

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