WAGE (Dollars per worker) 150 135 120 105 90 75 60 60 45 30 30 15 15 0 0 1 2 + 3 LABOR (Number of workers) O O 4 5 Demand P = $15 Demand P = $18 ? 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 1 2345 0 8 15 21 26 30 Suppose that the market wage for blueberry pickers is $80 per worker per day, and the price of blueberries is $15 per pound. On the following graph, use the blue points (circle symbol) to plot Blewitt's labor demand curve when the output price is $15 per pound. Note: Remember to plot each point between the two integers. For example, when the number of workers increases from 0 to 1, the value of the marginal product of for the first worker should be plotted with a horizontal coordinate of 0.5, the value halfway between 0 and 1. Line segments will automatically connect the points.
WAGE (Dollars per worker) 150 135 120 105 90 75 60 60 45 30 30 15 15 0 0 1 2 + 3 LABOR (Number of workers) O O 4 5 Demand P = $15 Demand P = $18 ? 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 1 2345 0 8 15 21 26 30 Suppose that the market wage for blueberry pickers is $80 per worker per day, and the price of blueberries is $15 per pound. On the following graph, use the blue points (circle symbol) to plot Blewitt's labor demand curve when the output price is $15 per pound. Note: Remember to plot each point between the two integers. For example, when the number of workers increases from 0 to 1, the value of the marginal product of for the first worker should be plotted with a horizontal coordinate of 0.5, the value halfway between 0 and 1. Line segments will automatically connect the points.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
1. At the given wage and price level, Blewitt’s should hire how many workers?
Suppose that the price of blueberries increases to $18 per pound, but the wage rate remains at $80.
On the previous graph, use the purple points (diamond symbol) to plot Blewitt's labor demand curve when the output
price is $18 per pound.
2. Now Blewitt’s should hire how may workers when the output price is $18 per pound?
3. Assuming that all blueberry-producing firms have similar production schedules, an increase in the price of blueberries will cause the (supply of or demand for) blueberry pickers to (increase or decrease)?
- Pick one for each blank
4. Suppose that wages increase to $110 due to an increased demand for workers in this market. Assuming that the price of blueberries remains at $18 per pound, Blewitt’s will now hire how many workers?
Transcribed Image Text:WAGE (Dollars per worker)
150
135
120
105
90
75
60
60
45
30
30
15
15
0
0
1
2
+
3
LABOR (Number of workers)
O
O
4
5
Demand P = $15
Demand P = $18
?
Transcribed Image Text: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
1
2345
0
8
15
21
26
30
Suppose that the market wage for blueberry pickers is $80 per worker per day, and the price of blueberries is $15 per pound.
On the following graph, use the blue points (circle symbol) to plot Blewitt's labor demand curve when the output price is $15 per pound.
Note: Remember to plot each point between the two integers. For example, when the number of workers increases from 0 to 1, the value of the
marginal product of for the first worker should be plotted with a horizontal coordinate of 0.5, the value halfway between 0 and 1. Line segments will
automatically connect the points.
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