ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
expand_more
expand_more
format_list_bulleted
Question
- Calculate the Marginal Product (MP) at each input level.
- If the
price of printer is $100 each, calculate the Value of the Marginal of labor (VMPL). - If the wage rate (per week) is $1800 , how many workers will be employed?
- If the firm decides to hire 14 workers, what is the maximum wage the firm would be willing to pay?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution
Trending nowThis is a popular solution!
Step by stepSolved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Similar questions
- The market for drones is perfectly competitive. Labor is the only variable input. The fixed cost is $371. Based on the information in the table below, what is the total cost when Q=300? Enter a number only, drop the $ sign. Wage rate =$100 per unit of Labour Quantity Quantity of of Labour Output 3 86 14 179 30 300 54 433arrow_forwardEldin 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?arrow_forwardIn 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=arrow_forward
- /arrow_forwardEdie chooses to work 90 hours per week when the wage rate is $16 per hour. If she is offered time-and-a-half ($24 per hour) for “overtime work” (i.e., hours in excess of 90 per week), will she choose to work longer hours? Support your results with a diagram.arrow_forwardIf the marginal product of labor is 50 per day, and if the market is $4.50, calculate the marginal revenue product.arrow_forward
- Assume a firm is trying to produce q0 units of output at the lowest total cost. The wage decreases, rotating the isocost line as shown in the below graph. Make the necessary changes to the graph to show the input combination that will now produce q0 at the lowest total cost. Make sure you show the new levels of labor and capital.arrow_forwardOne of these four answers could cause the demand curve for labor to shift to the right. Which one? Group of answer choices a decrease in the firm's product price an increase in demand for the firm's product a decrease in labor productivity an increase in the wage ratearrow_forwardI Collado Lumber Company is producing tons of lumber per day. The following table is the costs of production. The managers currently have six machines. The price of output is $5 per unit. The wage of the worker is $55 per worker. From economic theory, we know that the value of the marginal product is price times the marginal product of labor. According to economic theory, a worker should be hired if the value of the marginal product is greater than the marginal cost of hiring a worker. See the table below. Number of machines Number of workers Output The marginal product of labor VMP Wage Marginal cost of hiring an additional worker 6 0 0 xxx xxx $55.00 xxx 6 1 2 2 $10.00 $55.00 $55.00 6 2 14 12 $60.00 $55.00 $55.00 6 3 30 16 $80.00 $55.00 $55.00 6 4 42 12 $60.00 $55.00 $55.00 6 5 50 8 $40.00 $55.00 $55.00 6 6 56 6 $30.00 $55.00 $55.00 6…arrow_forward
- An economic downturn has caused the labor demand to decrease from DO to D1. In the short-run what will be the new wage and level of employment? Wage Rate 40 35 30 ($) 25 20 20 15 10 DO 5 D1 0 5 10 15 20 25 30 35 40 Quantity of Labor (Q)arrow_forwardWill decrea n he fong run, assume a firm uses both labor and capital to produce 25 units of output. The marginal product of the last unit of labor being employed is 100; the marginal product of the last unit of capital being employed is 500. The wage rate of labor is $10. If the firm is minimizing the cost of producing 25 units of output, what must be the unit price of capital?arrow_forwardIf the marginal product of labor increases because of a technological advancement, it will likely cause a fall in the number of workers employed. an increase in the price of output produced by labor. a fall in the wage paid to labor. an increase in demand for labor. an increase in the supply of labor.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Principles of Economics (12th Edition)EconomicsISBN:9780134078779Author:Karl E. Case, Ray C. Fair, Sharon E. OsterPublisher:PEARSONEngineering Economy (17th Edition)EconomicsISBN:9780134870069Author:William G. Sullivan, Elin M. Wicks, C. Patrick KoellingPublisher:PEARSON
- Principles of Economics (MindTap Course List)EconomicsISBN:9781305585126Author:N. Gregory MankiwPublisher:Cengage LearningManagerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage LearningManagerial Economics & Business Strategy (Mcgraw-...EconomicsISBN:9781259290619Author:Michael Baye, Jeff PrincePublisher:McGraw-Hill Education
Principles of Economics (12th Edition)
Economics
ISBN:9780134078779
Author:Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:9780134870069
Author:William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-...
Economics
ISBN:9781259290619
Author:Michael Baye, Jeff Prince
Publisher:McGraw-Hill Education