Consider an economy with 2 workers. If the value of the marginal product of labor (VMPL) is $50 and the marginal product of labor (MPL) is 15, what is the market price (P)?

Imagine you've been hired as the manager of a firm producing a certain product X. The following schedule shows the total production per week of product X Additionally, assume each unit of product X sells for $10 per unit, workers can be hired in a competitive labor market for $500 per week, and the rental price of a unit of capital is $R per week Capital (K) Quantity (Q) Labor (L) 0 5 0 1 5 40 2 5 105 3 5 170 4 5 245 5 5 325 6 5 410 7 5 500 8 5 595 9 5 695 10 5 760 11 5 810 12 5 855 13 5 890 14 5 915 15 5 930 a. How many workers should be hired? To answer this question, append to the above table three new columns similar to columns (3), (4) and (5) of Table 5-2 in your textbook. Explain your final answer!

Edie 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.

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.

Problem 4 Consider a labor market. Quantity supplied is given by Qs=1000+20*P. Quantity demanded is given by Qd=1307.5-0.5*P Plot these curves on a graph with 5 points at P=5,10,15,20,25

Which statement best explains how the substitution effect impacts labor as a factor of production? Scarcity of a reliable workforce leads to increased rates of unemployment. Falling salaries cause a large staff turnover and hostile working environment. Increased wage demands may lead to worker layoffs in favor of machinery. Inexperience workers are more likely to receive professional training.

Ab 6  Economics  To construct a house, Eric uses power tools (qK) and hires workers (qL). Power tool rental is $10 per hour, while each worker can be hired at a rate of $30 per hour. If the wage rate falls to $20, what is the value of the slope of the new isocost curve?

What can be determined by the slope of the curve. The relationship between the relative price of cigars to soyabean (Pc / Ps) and the wage-rental ratio (w/r) is depicted by the SS labelled curve. Relative price of cigars, Pc/Ps SS Wage-rental ratio, w/r a) Neither good is capital-intensive b) Both are labor-intensive. c) Both are capital-intensive. d) Cigars are labor-intensive while soyabeans are capital-intensive.

For a decrease in the price of capital (K), construct a table AND explain the scale and substitution effects for a producer.

Martin's Magical Milk Farm produces cow's milk and sells it to a local store for $2.20 per gallon. Agricultural workers in the area are paid a fixed wage rate of $90 per day. Use this information and the information in the table below to answer the questions that follow. What is the marginal product of labour for employing a third worker? What is the value of marginal product of labour for employing a sixth worker? $ Workers 0 1 2 3 4 5 6 Quantity of Milk per day(gallons) 0 70 130 180 220 240 250 Units