Economics (Irwin Economics)
21st Edition
ISBN: 9781259723223
Author: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn Dr.
Publisher: McGraw-Hill Education
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Question
Chapter 17, Problem 3DQ
To determine
Individual and market supply curve.
Expert Solution & Answer
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A single firm is the only employer in a labour market. The marginal revenue product, labour supply, and
marginal factor cost curves that it faces are displayed in the diagram below. Use this information to answer the
following questions.
1. How many units of labour will this firm employ in order to maximize it's economic profits?
2. what hourly wage rate will this firm pay it's workers?
3. What is the total amount of wage payments that this firm will make to its workers each hour?
per Hour ($)
Wage Rate, Marginal Factor Cost,
Revenue Product
and Marginal
28
20
13
10
0
1
3
1
C
S
X
MFC
MRP
1000
1600
Quantity of Labour per Time Period
Dolls are fabricated in a process with two resources. The first resource has a capacity of 1.5 dolls per hour.
The capacity of the second resource is 0.99 dolls per hour. The first resource has 7 workers and the second
resource has 9 workers. Demand for this process is 1.1 dolls per hour. Wages are $24 per hour.
Instruction: Round your answer to two decimal places.
What is the cost of direct labor (in $)?
per unit
Problem 51: With the table below showing the firm's outputs given the labor inputs:
Labor
1
2
3
4
5
7
Quantity
Total Output 20
35
47
57
65
70
a. Identify the profit maximizing labor quantity if w = $16/hr. and P of Q = $2/unit
b. Determine the same as letter (a) but the wage is higher at w = $20/hr.
c. Determine the same as letter (a) but the P of Q is now $3.5/unit
Chapter 17 Solutions
Economics (Irwin Economics)
Ch. 17.3 - Prob. 1QQCh. 17.3 - Prob. 2QQCh. 17.3 - Prob. 3QQCh. 17.3 - Prob. 4QQCh. 17.A - Prob. 1ADQCh. 17.A - Prob. 2ADQCh. 17.A - Prob. 3ADQCh. 17.A - Prob. 4ADQCh. 17.A - Prob. 5ADQCh. 17.A - Prob. 1ARQ
Ch. 17.A - Prob. 2ARQCh. 17.A - Prob. 3ARQCh. 17.A - Prob. 4ARQCh. 17.A - Prob. 1APCh. 17.A - Prob. 2APCh. 17 - Prob. 1DQCh. 17 - Prob. 2DQCh. 17 - Prob. 3DQCh. 17 - Prob. 4DQCh. 17 - Prob. 5DQCh. 17 - Prob. 6DQCh. 17 - Prob. 7DQCh. 17 - Prob. 8DQCh. 17 - Prob. 9DQCh. 17 - Prob. 10DQCh. 17 - Prob. 1RQCh. 17 - Prob. 2RQCh. 17 - Prob. 3RQCh. 17 - Prob. 4RQCh. 17 - Prob. 5RQCh. 17 - Prob. 6RQCh. 17 - Prob. 7RQCh. 17 - Prob. 1PCh. 17 - Prob. 2PCh. 17 - Prob. 3PCh. 17 - Prob. 4PCh. 17 - Prob. 5P
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