If the Labor Demand Curve is given by the equation W = 18 – 0.5L, then the maximum willingness to pay for the 16th worker is   Group of answer choices a) $8.50. b) $11. c) $10. d) $8. e) $17.

Suppose the hourly wage rate is $14, the rental price of capital is $2 and the price of output is constant at $42 per unit. Firm's production technology is q = 4K0.25 0.75, the marginal product of employment is MPE =3K0.25E-0.25 and the marginal product of capital is MPK = K™ 0.75 0.75. What is firm's optimal demand of labor if firm plans to produce q=19 units of outputs in the long-run? (please keep 1 decimal place in your answer)

If q=2 (square root of L); the wage rate is 4 and the price at which the good sells is 8 to maximize profits the firm should use more labor if the current L is less than.......

Consider Ann, who has a project that would be worth $270 to her if performed by a hard worker and $70 if performed by a loafer, but that she cannot do herself. She considers hiring Bob to perform the task. If hired, Bob’s utility is given by: U(w,a) = w1/2 – a where w is the wage Bob receives and a = 5 if bob works hard on the project and a = 0 if Bob loafs on the job. Furthermore, bob would rather sit at home where he obtains a utility of 9, if he can’t do at least that well on the job. A.   What is the smallest wage Ann can offer that will get Bob to accept the job? At that wage will Bob work hard or loaf? Why? Will Ann hire Bob at this wage? Explain. B.   What is the smallest wage Ann can offer that will make it worth Bob’s while to accept the job and work hard? If she makes an unconditional offer to Bob at that wage is he likely to work hard? Explain. C.  What kind or contract might Ann offer that would end up with Bob being hired and Ann benefiting? What problems might there be…

Consider the Labor Economics Question.  This will provide insight into the idea of the optimal number of workers and the value of the marginal product of labor.   If wages in the restaurant is $16.80 per hour and the price of a Hamburger is $8.30 and the production function for the workers is:   Q = 11L – 0.25L2 How many workers should Your Restaurant employ during the lunch hour to maximize profits?  1 Point   (note—the value of the marginal product of labor and the marginal   revenue product are the same)     We maximize profits which are total revenues less total costs: