The marginal product of the 6 t h farm worker and the marginal product of the 8 t h worker, if the price rises to $3 a bunch.

Question

Want to see more full solutions like this?

Answer 1

Question

Definition Video Formula Definition Phenomenon in which market supply and demand balance each other. Market equilibrium is the economic state in which the market demand curve intersects the market supply curve, giving us the equilibrium price and equilibrium quantity for which a commodity can be sold and purchased in an economy. When market equilibrium is achieved, it suggests that all resources have been allocated efficiently and that there is just a distribution of income and resources in the economy. Video Formula

Chapter 19, Problem 1SPPA

To determine

To compute:

The marginal product of the 6^t^h farm worker and the marginal product of the 8^t^h worker, if the price rises to $3 a bunch.

Expert Solution & Answer

Explanation of Solution

In the labour market, an equilibrium occurs when wage rate equals value of marginal product. If the farm employs six workers, and the wage rate is $12 per hour, then the value of the marginal product of the sixth farm worker must be $12 per hour. If asparagus costs $2, then the marginal product of labour (which is the value of marginal product divided by the price) is 6 units.

If the price of asparagus rises, the farm hires two more workers, it still must be that the value of marginal product of the eighth farm worker is equal to the wage rate. So, the value of the marginal product of the eighth farm worker is $12 per hour. If asparagus costs $3, then the marginal product of labour (which is the value of marginal product divided by the price) is 4 units.

Economics Concept Introduction

Marginal product:

Marginal product is addition to total product when one more unit of labour is employed. Generally, the marginal product is positive.

Want to see more full solutions like this?

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

Students have asked these similar questions

3. Consider the market for paper. The process of producing paper creates pollution. Assume that the marginal damage function for pollution is given by: MDF = 3E where damages are measured in dollars and E is the level of emissions. Assume further that the function describing the marginal abatement cost of emissions is given by MAC 120-E where benefits are measured in dollars and E is the level of emissions. a. Graph the marginal damage function (MDF) and the marginal abatement cost function (MAC). b. What is the unregulated level of emissions Eu? What is the social welfare of this emissions level? c. Assume an existing emission quota limits emissions to E = 60. Show on the graph why this policy is inefficient. What is the deadweight loss caused by this policy?

show written calculation for B

Problem 1: 1. If a stock is expected to pay an annual dividend of $20 forever, what is the approximate present value of the stock, given that the discount rate is 5%? 2. If a stock is expected to pay an annual dividend of $20 forever, what is the approximate present value of the stock, given that the discount rate is 8%? 3. If a stock is expected to pay an annual dividend of $20 this year, what is the approximate present value of the stock, given that the discount rate is 8% and dividends are expected to grow at a rate of 2% per year?

Answer 2

Question

Definition Video Formula Definition Phenomenon in which market supply and demand balance each other. Market equilibrium is the economic state in which the market demand curve intersects the market supply curve, giving us the equilibrium price and equilibrium quantity for which a commodity can be sold and purchased in an economy. When market equilibrium is achieved, it suggests that all resources have been allocated efficiently and that there is just a distribution of income and resources in the economy. Video Formula

Chapter 19, Problem 1SPPA

To determine

To compute:

The marginal product of the 6^t^h farm worker and the marginal product of the 8^t^h worker, if the price rises to $3 a bunch.

Expert Solution & Answer

Explanation of Solution

In the labour market, an equilibrium occurs when wage rate equals value of marginal product. If the farm employs six workers, and the wage rate is $12 per hour, then the value of the marginal product of the sixth farm worker must be $12 per hour. If asparagus costs $2, then the marginal product of labour (which is the value of marginal product divided by the price) is 6 units.

If the price of asparagus rises, the farm hires two more workers, it still must be that the value of marginal product of the eighth farm worker is equal to the wage rate. So, the value of the marginal product of the eighth farm worker is $12 per hour. If asparagus costs $3, then the marginal product of labour (which is the value of marginal product divided by the price) is 4 units.

Economics Concept Introduction

Marginal product:

Marginal product is addition to total product when one more unit of labour is employed. Generally, the marginal product is positive.

Want to see more full solutions like this?

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

Answer 3

Question

Definition Video Formula Definition Phenomenon in which market supply and demand balance each other. Market equilibrium is the economic state in which the market demand curve intersects the market supply curve, giving us the equilibrium price and equilibrium quantity for which a commodity can be sold and purchased in an economy. When market equilibrium is achieved, it suggests that all resources have been allocated efficiently and that there is just a distribution of income and resources in the economy. Video Formula

Chapter 19, Problem 1SPPA

To determine

To compute:

The marginal product of the 6^t^h farm worker and the marginal product of the 8^t^h worker, if the price rises to $3 a bunch.

Expert Solution & Answer

Explanation of Solution

In the labour market, an equilibrium occurs when wage rate equals value of marginal product. If the farm employs six workers, and the wage rate is $12 per hour, then the value of the marginal product of the sixth farm worker must be $12 per hour. If asparagus costs $2, then the marginal product of labour (which is the value of marginal product divided by the price) is 6 units.

If the price of asparagus rises, the farm hires two more workers, it still must be that the value of marginal product of the eighth farm worker is equal to the wage rate. So, the value of the marginal product of the eighth farm worker is $12 per hour. If asparagus costs $3, then the marginal product of labour (which is the value of marginal product divided by the price) is 4 units.

Economics Concept Introduction

Marginal product:

Marginal product is addition to total product when one more unit of labour is employed. Generally, the marginal product is positive.

Want to see more full solutions like this?

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

Answer 4

Question

Definition Video Formula Definition Phenomenon in which market supply and demand balance each other. Market equilibrium is the economic state in which the market demand curve intersects the market supply curve, giving us the equilibrium price and equilibrium quantity for which a commodity can be sold and purchased in an economy. When market equilibrium is achieved, it suggests that all resources have been allocated efficiently and that there is just a distribution of income and resources in the economy. Video Formula

Chapter 19, Problem 1SPPA

To determine

To compute:

The marginal product of the 6^t^h farm worker and the marginal product of the 8^t^h worker, if the price rises to $3 a bunch.

Expert Solution & Answer

Explanation of Solution

In the labour market, an equilibrium occurs when wage rate equals value of marginal product. If the farm employs six workers, and the wage rate is $12 per hour, then the value of the marginal product of the sixth farm worker must be $12 per hour. If asparagus costs $2, then the marginal product of labour (which is the value of marginal product divided by the price) is 6 units.

If the price of asparagus rises, the farm hires two more workers, it still must be that the value of marginal product of the eighth farm worker is equal to the wage rate. So, the value of the marginal product of the eighth farm worker is $12 per hour. If asparagus costs $3, then the marginal product of labour (which is the value of marginal product divided by the price) is 4 units.

Economics Concept Introduction

Marginal product:

Marginal product is addition to total product when one more unit of labour is employed. Generally, the marginal product is positive.

Want to see more full solutions like this?

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

Answer 5

Chapter 19, Problem 1SPPA

To determine

To compute:

The marginal product of the 6^t^h farm worker and the marginal product of the 8^t^h worker, if the price rises to $3 a bunch.

Expert Solution & Answer

Explanation of Solution

In the labour market, an equilibrium occurs when wage rate equals value of marginal product. If the farm employs six workers, and the wage rate is $12 per hour, then the value of the marginal product of the sixth farm worker must be $12 per hour. If asparagus costs $2, then the marginal product of labour (which is the value of marginal product divided by the price) is 6 units.

If the price of asparagus rises, the farm hires two more workers, it still must be that the value of marginal product of the eighth farm worker is equal to the wage rate. So, the value of the marginal product of the eighth farm worker is $12 per hour. If asparagus costs $3, then the marginal product of labour (which is the value of marginal product divided by the price) is 4 units.

Economics Concept Introduction

Marginal product:

Marginal product is addition to total product when one more unit of labour is employed. Generally, the marginal product is positive.

Answer 6

Chapter 19, Problem 1SPPA

To determine

To compute:

The marginal product of the 6^t^h farm worker and the marginal product of the 8^t^h worker, if the price rises to $3 a bunch.

Expert Solution & Answer

Explanation of Solution

In the labour market, an equilibrium occurs when wage rate equals value of marginal product. If the farm employs six workers, and the wage rate is $12 per hour, then the value of the marginal product of the sixth farm worker must be $12 per hour. If asparagus costs $2, then the marginal product of labour (which is the value of marginal product divided by the price) is 6 units.

If the price of asparagus rises, the farm hires two more workers, it still must be that the value of marginal product of the eighth farm worker is equal to the wage rate. So, the value of the marginal product of the eighth farm worker is $12 per hour. If asparagus costs $3, then the marginal product of labour (which is the value of marginal product divided by the price) is 4 units.

Economics Concept Introduction

Marginal product:

Marginal product is addition to total product when one more unit of labour is employed. Generally, the marginal product is positive.

Answer 7

Chapter 19, Problem 1SPPA

To determine

To compute:

The marginal product of the 6^t^h farm worker and the marginal product of the 8^t^h worker, if the price rises to $3 a bunch.

Answer 8

Expert Solution & Answer

Explanation of Solution

In the labour market, an equilibrium occurs when wage rate equals value of marginal product. If the farm employs six workers, and the wage rate is $12 per hour, then the value of the marginal product of the sixth farm worker must be $12 per hour. If asparagus costs $2, then the marginal product of labour (which is the value of marginal product divided by the price) is 6 units.

If the price of asparagus rises, the farm hires two more workers, it still must be that the value of marginal product of the eighth farm worker is equal to the wage rate. So, the value of the marginal product of the eighth farm worker is $12 per hour. If asparagus costs $3, then the marginal product of labour (which is the value of marginal product divided by the price) is 4 units.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Economics Concept Introduction

Marginal product:

Marginal product is addition to total product when one more unit of labour is employed. Generally, the marginal product is positive.

Answer 12

Ch. 19 - Prob. 1SPPA Ch. 19 - Prob. 2SPPA Ch. 19 - Prob. 3SPPA Ch. 19 - Prob. 4SPPA Ch. 19 - Prob. 5SPPA Ch. 19 - Prob. 6SPPA Ch. 19 - Prob. 7SPPA Ch. 19 - Prob. 8SPPA Ch. 19 - Prob. 9SPPA Ch. 19 - Prob. 10SPPA

The marginal product of the 6 t h farm worker and the marginal product of the 8 t h worker, if the price rises to $3 a bunch.

To compute: The marginal product of the 6th farm worker and the marginal product of the 8th worker, if the price rises to $3 a bunch.

Explanation of Solution

Want to see more full solutions like this?

Chapter 19 Solutions

To compute:

The marginal product of the 6^t^h farm worker and the marginal product of the 8^t^h worker, if the price rises to $3 a bunch.