7. Study Questions and Problems #6 Answer the following question assuming the labor market for loggers is perfectly competitive. If the price of a substitute for wood such as plastic or metal decreases, wages of loggers will because the marginal revenue product of loggers will

1. The demand for labor Consider Live Happley Fields, a small player in the strawberry business whose production has no individual effect on wages and prices. Live Happley's production schedule for strawberries is given in the following table: Labor Input Total Output (Number of workers) (Pounds of strawberries) 0 0 1 16 2 30 3 42 4 52 5 60 Suppose that the market wage for strawberry pickers is $200 per worker per day, and the price of strawberries is $15 per pound. On the following graph, use the blue points (circle symbol) to plot Live Happley's labor demand curve when the output price is $15 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 marginal revenue product of 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 RATE (Dollars per worker) 300 270 240 210 180 150 120 90 60 30 0 0…

Baghiben

Table 14.10 shows levels of employment (Labor), the marginal product at each of those levels, and the price at which the firm can sell output in the perfectly competitive market where it operates. a. What is the value of the marginal product at each level of labor?b. If the firm operates in a perfectly competitive labor market where the going market wage is $12, what is thefirm’s profit maximizing level of employment?

Billy is hiring workers to help him install solar panels. The table below presents the marginal product (in terms of solar panels installed per week) of various workers. Assume this is a perfectly competitive market.   a. What is the marginal revenue product of each worker if the current market price to install one solar panel is $50? What if the current market price is $100? $150? Using the table below, fill in the “Marginal Revenue Product” columns for each price.   Labor Productivity and Marginal Revenue Product for Solar Panel Installers Labor (workers) Marginal Product (solar panels) Marginal Revenue Product for P = $50 (dollars) Marginal Revenue Product for P = $100 (dollars) Marginal Revenue Product for P = $150 (dollars) 1 14 $  $  $  2 12       3 10       4 8       5 6       6 4       7 2       b. Graph the three marginal revenue product curves (for prices of $50, $100, and $150) based on your answers to part a. Instructions: Use the tools provided "MRP (P…

Consider the labor market defined by the supply and demand curves plotted on the following graph. Use the calculator to help you answer the following questions. You will not be graded on any changes you make to the calculator. WAGE (Dollars per hour) 20.0 17.5 Supply 15.0 12.5 10.0 7.5 5.0 25 Demand 0 125 250 375 500 625 750 LABOR (Thousands of workers) 875 1000 Graph Input Tool Market for Labor Wage (Dollars per hour) 2.50 Labor Demanded (Thousands of workers) 875 Labor Supplied (Thousands of workers) 125 Complete the following table with the quantity of labor supplied and demanded if the wage is set at $12.50. Then indicate whether this wage will result in a shortage or a surplus. Hint: Be sure to pay attention to the units used on the graph and in the table. For example, type in 100 for 100,000 workers. Labor Demanded Labor Supplied Wage (Thousands of workers) (Thousands of workers) Shortage or Surplus? $12.50 Suppose the federal government contemplates a new law that would create a…

am. 10.

Question 1 Candice's' Cookies is a new cookie delivery company in Gainesville, Florida. The firm hires local college students to sell cookies door-to-door in higher income neighborhoods. Each of these "Sales Associates" sells cookies, which increases Candice's Cookies' total revenue, but must be paid an hourly wage. The graph below depicts Candice's Cookies' demand for labor curve when the retail price of a cookie is $2. $35 Hourly Wage C. 3 cookies D. 4 cookies E. 5 cookies $30 $25 $20 $15 $10 $5 6 8 10 12 14 Number of Sales Associates Part (i): Suppose that the retail price of a cookie is $2.50. What is the marginal product of the 4th Sales Associate? A. 1 cookie B. 2 cookies Part (ii): Suppose that the retail price of a cookie is $2.50. What is the marginal product of the 6th Sales Associate? A. 1 cookie B. 2 cookies C. 3 cookies D. 4 cookies E. 5 cookies Part (iii): Suppose that the retail price of a cookie is $2.50. What is the marginal product of the 8th Sales Associate? A. 1…