Explain the relationship between the own-wage elasticity of labor demand and output demand elasticity. labour costs as a share of total costs of production.

D, e and f

Derive the output elasticity of labour in the following alternative production function: Y = c + alnK + BlnL

If the marginal product of labor is 50 per day, and if the market is $4.50, calculate the marginal revenue product.

If there is an increase in worker productivity, then the demand for labor will a) increase b) decrease c) remain the same d) unkown, not enough information to specify among these options.

i) Derive the output elasticity of labour in the following alternative production function: Y = c + alnk + ßlnL ii) Suppose B = 0.5 and other factors are fixed, explain the unit change in output due to a percentage change in labour.

A worker's labor supply depends on, among other things, his ability, his preference for the task, and the opportunity cost of his time. True False

Bob White argues that if his wage went up from $10/hour to $20/hour he would still be able to pay rent and feed his family even if he worked half as many hours. So, if his wage increased he would want to work proportionally less. What is strange about Bob White's labor supply curve? it is very elastic it is very inelastic it slopes down it is vertical

For a firm selling its product in a purely competitive market, the marginal revenue product of labor can be found by Multiple Choice adding marginal product to total product as one more unit of labor is employed. adding marginal revenue to total product as one more unit of labor is employed. multiplying marginal product by product price.

Describe the construction of the firm’s demand curve for labour in the short run.Describe the relationship between the firm's demand curve for labour in the short-run andthe market demand curve for labour in the short-run. In particular, is one curve likely to bemore or less elastic than the other? Explain your answer.