ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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c. Show the effect of each of the following events on the market for labour in the computer tablet manufacturing
industry:
(i) The government buys tablets for all university students.
(ii) More university students graduate in engineering and computer science.
(iii) Computer firms build new manufacturing factories.
(iv) If the population of the country suddenly grew because of a large immigration, what would you expect to happen to wages? What would happen to the rents earned by the owners of land and capital?
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- You are given a scenario where this a change in a factor of production or a change in demand for an item. You need to explain in sentence form how this would change demand for labor. 1. Apple develops the iPhone and demand for it surges as people realize the benefits of this improved technology. You manufacture flip phones.arrow_forward11. Describe what happens to quantity of labor supplied when wages are at the equilibrium level, above equilibrium, and below equilibrium.arrow_forwardThe war in Ukraine has driven many highly qualified IT specialists into neighboring Poland, where many chose to remain and start looking for jobs There are four graphs, depicting: (1) labor market for IT specialists in Poland, (2) the profit maximizing decision of a typical perfectly competitive Polish software firm, (3) market for Polish software products; (4) the Polish market for imported software products. Our goal is to analyze, using what you have learned, the effect of influx of foreign IT specialists on the three markets and on the typicalPolish software firm.. You have to address the questions in order, starting with the labor market for farm workers. In the labor market for IT specialists:: 1. Label clearly the supply and demand curves, S and D. 2. In the text, indicate clearly what side of the market is affected, supply or demand, by underlining or circling the relevant term. 3. Once you decided which side of the market is affected and how, show on the graph the new supply…arrow_forward
- Demand for Resources A small manufacturing company has the following daily relationship between labor and output: Units of Total Labor Product 1 2 21 3 35 52 61 65 61 7 If the firm sells into a perfectly competitive market and the equilibrium price is $3.25 per unit, compute the following: Marginal Units of Marginal Product Revenue Labor Product 1 2 3 5 7 How many workers will the firm hire is the market wage rate (includining benefits) is $30.00? Wł 3 How many workers will the firm hire is the market wage rate(includining benefits) is $20.00? 4 If the equilibrium price per unit of output dencreases, what would you expect to happen to the number of workers hired? If the firm sells in a imperfectly competitive market such that price per unit starts at $4.50 per ur declines by $0.10 per unit as more as sold, what do you think would happen to the number of labor units hired at $30.00 per unit? 5 2.arrow_forwardQuestion 1: Labor Demand The table below represents information on hourly output and revenue for a firm in a perfectly competitive market where the L represents worker. Labor Demand table P TR MR MP MRP L 0 0 1 12 2 30 120 3 24 24 4 40 40 160 168 5 9 43 172 1. Complete the table 7 8 2. Using the data from the table, if the MRC (wage) is $16 per hour, how many laborers would be employed? Draw the MRC and MRP graph for this question and show the employed point 3. If MRC (wage) were to increase to $26 per hour, how many laborers would be employed?arrow_forward13. Consider this statement: "In the labor market, businesses supply jobs." Explain what is wrong with this statement, in your own words. Give an example of an accurate statement that could replace it.arrow_forward
- Consider a company operating in a competitive market. The company sells units of output and receives a price of $30 per unit, and pays a daily market wage of $285 to each worker it employs. In the following table, complete the column for the value of the marginal product of labor (VMPL) at each quantity of workers. Value of the Marginal Product of Labor Labor Output Marginal Product of Labor (Number of workers) (Units of output) (Units of output) (Dollars) WAGE (Dollars per worker) 500 450 On the following graph, use the blue points (circle symbol) to plot the firm's labor demand curve. Then, use the orange line (square symbols) to show the wage rate. (Note: If you cannot place the wage rate at the level you want, move the two end points individually.) 400 Hint: Remember to plot each point halfway between the two integers. For example, when the number of workers increases from 0 to 1, the value of the marginal product for the first worker should be plotted with a horizontal coordinate…arrow_forward21. How does increased immigration affect the labor market? How would the equilibrium wage and the equilibrium quantity of labor be affected?arrow_forwardDescribe what happens to quantity of labor supplied when wages are at the equilibrium level, above equilibrium, and below equilibrium.arrow_forward
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