A firm produces output via the function: Q = L - (L²/800), where Q is the output per week and L is the number of labor hours per week. The firm's additional cost of hiring an extra hour of labor is about $25 per hour (wage plus fringe benefits). The firm faces the fixed selling price, P = $40. How much labor should the firm employ?

Suppose that Zamboni Enterprises is the only company that sells zambonis (ice resurfacing machines). To produce the machines, the company hires assembly workers. Since these workers can work in many different companies, Zamboni Enterprises must pay them the market wage, which is equal to $6. The number of zambonis that the company produces, which is denoted by y, is proportional to the number of assembly workers that it hires, which are denoted by N; in particular, the production function is given by y=0.76N. The economywide demand for zambonis is given by the following demand function: y=2191-219p, where y is the number of zambonis that consumers are willing to purchase at price p.  Given this market structure, how many assembly workers will Zamboni Enterprises choose to hire? How many zambonis will Zamboni Enterprises produce and sell?

Using the figure below, if Company X hires 12 workers what will their marginal product be? 15 10 5 1 4 8 12 16 Labor Provide your answer below: MP1 Marginal Product (MP,)

4. Profit maximization Consider Blewitt's Farm, a small blueberry grower relative to the size of the market whose production has no impact on wages and prices. The following table presents Blewitt's production schedule for blueberries: Labor Output (Number of workers) (Pounds of blueberries) 0 0 1 2 3 4 5 сл 20 38 54 68 80 Suppose that the market wage for blueberry pickers is $200 per worker per day, and the price of blueberries is $13 per pound.

Consider a firm that sells its output in a perfectly competitive product market and hires labour in a perfectly competitive labour market. The value of the marginal product of labour (in pounds) is given by: VMPE=20-5E Assuming that the firm is a profit maximiser and can hire labour at £W per unit, derive its labour demand function.    Given that there are 50 identical firms (like the firm described in (b)) in the industry, find the market labour demand. If the supply function of labour to this market is: WS=30W

a) If Wm = Wf from what type of labor market does the firm hire its workers? b) Assume the productivity of workers increases as a result of improvement in technology. What will happen to each of the following in the short run? i) The market demand for labor ii)The wage rate the firm will pay c) Suppose the firm only produces good X and that the price of good Y, a substitute good, decreases. What will happen to the optimal quantity of labor the firm will hire? Explain. d) If the labor market were a monopsony, would the monopsonist hire more, fewer, or the same number of workers as QM to maximize its profit?

Eldin is a house painter. He can paint three houses per week. He is considering hiring his friend Murphy. Murphy can paint five houses per week. What is the maximum total output possible if Eldin hires Murphy?

In this question you will derive a simple labour demand curve. Suppose that the number of calculators a firm can produce per hour (TP) given a certain number of workers (L), is given by: TP = 396 ln(L +17) + 13L The cost of using each worker is just their hourly wage (w). So the total labour cost is C = wL. If the price of each calculator is $11, find the profit maximizing wage as a function of number of workers used (L). W=

The Zippy Paper Company has no control over either the price of paper or the wage it pays its workers. The following table shows the relationship between the number of workers Zippy hires and total output, with all other inputs being held constant. In the following table, for each quantity of labor input, fill in the marginal product (MP) and marginal revenue product (MRP) for Zippy. (Note: When the price doubles, this will also double the marginal revenue product.) Labor Input Total Output Marginal Product Marginal Revenue Product (Workers per day) (Boxes of paper per day) (Boxes of paper per day) Price = $10 Price = $20 (Dollars) (Dollars) 0 0             1 25       2 45       3 60       4 70       5 75       6 77       Assume that the selling price of paper is $10 per box. If the wage rate is $125.00 per day, Zippy will hire ______workers.   Continue to assume that the selling…

Refer to the table below. Assume the wage rate equals $10 for each worker hired, and fixed costs are $120. Diminishing marginal productivity of labour begins with which worker? Quantity Workers 0 10 0 1 2 15 3 18 20 4 21 5