A large steel producer has two types of job offers: ED (Engineer Development) and EM (Engineer Mechanical). Both jobs require an Engineer degree. The ED job requires high analytical skills and computer software development to work in the steel plant. The market entry wage is $130,000. The EM job is less demanding and requires no software development knowledge. Market entry wage is $68,000 for an EM. The firm's hiring policy is: Individuals successfully taking and passing w computer courses during college will be regarded as ED and paid $138,000; otherwise, he or she will be regarded as EM type and paid S76,000. ED's opportunity cost to complete a tough course is $3,650, and EM's opportunity cost to complete a tough course is $10,200. Instructions: use no decimal for your answers. The w from the incentive-compatibility condition for ED is: The w from the incentive-compatibility condition for EM is: The w from the participation condition for ED is: The range of w for which a sepration of the type of salesepersons is: C At 2.2 < w < 17, ED submits w. EM will not submit any w. C There is no range of w that separates ED and EM. The screening device w is ineffective at separating the types. C At 6 < w< 17, both ED and EM types submit w. O At 6 < w< 17, ED submits w. EM will not submit any w. What would you recommend to the firm in this case? C The firm can use the market wages and recalculate w. O The firm can increase the EM wage or use a different opportunity cost. C The firm can increase the ED wage or use another opportunity cost for the types. C The firm can increase the ED wage or use another screening device.

Suppose the hourly wage rate is $14, the rental price of capital is $2 and the price of output is constant at $42 per unit. Firm's production technology is q = 4K0.25 0.75, the marginal product of employment is MPE =3K0.25E-0.25 and the marginal product of capital is MPK = K™ 0.75 0.75. What is firm's optimal demand of labor if firm plans to produce q=19 units of outputs in the long-run? (please keep 1 decimal place in your answer)

A competitive employer will hire inputs up to the point where the Multiple Choice marginal product of the input reaches a maximum. price of the input equals the price of the output. price of the input equals the marginal product of the input. price of the input equals the marginal revenue product of the input

Question 52 Which of the following does not cause the labor demand curve to shift? Group of answer choices Changes in the wage rate Changes in the price of the firm’s good or service Increases in technology Increases in the firm’s capital

Boeing created, and recently expanded, an airplane manufacturing center in Charleston, South Carolina. One of the factors that likely influenced this location decision is that South Carolina is a "right to work" state. This represents a) a place factor related to labor. b) a transportation factor related to the market. c) higher wages for Boeing workers in South Carolina relative to Washington. d) a place factor related to the political environment.

the employee has worked. A typical case Luba works on commission and has a weekly pay period. One week, she was paid $150.00 in commission and worked 25 hours. The minimum wage applicable to Luba is $14.25 an hour. The minimum wage ($14.25) multiplied by the number of hours worked in the pay period (25) is $356.25. Luba is owed the difference between her commission pay ($150) and the required minimum wage ($356.25). Calculate: Luba's employer owes her $

Discuss the relationship between job rotation and strategic management

If q=2 (square root of L); the wage rate is 4 and the price at which the good sells is 8 to maximize profits the firm should use more labor if the current L is less than.......

A clinic uses doctors and nurses to serve the maximum number of patients given a limited annual payroll. The clinic currently has 10 doctors and 30 nurses. The last doctor hired can serve 300 additional patients, while the last nurse hired can serve 200 additional patients. If doctors make $180, 000 a year and nurses make $60,000 a year, the clinic Multiple Choice is making the correct hiring decision because doctors are more productive than nurses. is making the correct hiring decision because doctors are paid more than nurses. could serve more patients with the same payroll by hiring more doctors and fewer nurses. could serve more patients with the same payroll by hiring more nurses and fewer doctors.

Problem #3: Labor Unions (20 points) Sarah is thinking if she should join the labor union in their company. Her utility function is U (c, 1) = (cl)05, where c denotes consumption, and I denotes leisure. She has 16 hours each day to allocate between work and leisure. 1. Given her non-labor income is zero, how many hours will Sarah work at $7 wage/hour? In addition, how much consumption and leisure can she afford, and how much utility can she achieve from this? 2. If the labor unioh bargains for a $10.5 overtime pay rate for work hours beyond 8 hours, will Sarah benefit from this proposal? 3. If, instead, the labor union proposes an 8-hour workday, will Sarah benefit from it?