It is easy to conclude that when hiring workers in the short run whose marginal productivity rises, the average product of labor will rise as well. However, if workers productivity declines, average product of labor may still be rising. Explain why this may happen.

Q: s not maxim

A: Marginal Revenue is the amount of additional revenue being generated when additional Labor is being…

Q: Use a diagram to thoroughly explain the backward bending labor supply curve and explain what income…

A: Backward bending labor supply curve is the graphical representation of the relationship between wage…

Q: A backward-bending labor supply curve occurs when: None of the above a negatively sloped labor…

A: Labor supply curve shows the relationship between the wage rate and the number of workers willing to…

Q: The price of factor A is GHC20 per unit and the price of factor B is GHC300.00 per unit.The marginal…

A: Answer: As per the given question price of factor A is GHC20 per unit and the price of factor B is…

Q: If total product is maximum, hiring and additional worker will

A: Marginal productivity = change in total productivity/change in input

Q: provide an isoquant/isocost analysis diagram explaining the possible impact of the higher wages on…

A: Iso-cost shows the combination of the inputs which provides the same level of cost. Iso-quant shows…

Q: Assume that the firms in the United States set their price as a markup on their wage cost. Assume…

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Q: Initially a firm's wage is w $24 and its rental cost of capital is r $24. After its wage rate…

A: Here we have to draw the Isocist line.An isocost line shows all possible combinations of two inputs,…

Q: Graph the isocost line associated with a wage of $10 per hour and a price of capital of $50 for…

A: The locus of all combinations of labor and capital used at a given cost is the isocost line. The…

Q: What is meant by an inferior factor of production? How would the firm’s demand for labour be altered…

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Q: Who has given the concept of wage fund theory? a) J.S. Mill b) Marshall c) Ricardion d) Jevons

A: According to the wage fund theory, the wages paid to the workers depend upon the available capital…

Q: ... Assume that the price of a car wawsh is $10 and the marginal product of labor at the car wash is…

A: Marginal product is the change in total product due to an additional labor hired.  Marginal revenue…

Q: 3. 2r6x. The factor prices are pi = $3 and p2 = $4 and the firm can hire as much of either The…

A: please find the answer below.

Q: Using a diagram explain what happens to the long-run demand curve for labor if the price of labour…

A: Explanation:The long-run demand curve for labor depicts the relationship between the wage rate…

Q: Illustrate graphically and explain the income and substitution effects of a wage decrease on hours…

A: Income effect states the impact of increase in the purchasing power upon consumption, while the…

Q: a) With the use of an illustration derive the backward sloping supply curve of labour and explain…

A: labor supply refers to the amount of labor that people are willing and capable of provide for…

Q: Give typing answer with explanation and conclusion  If quasi-fixed labour costs are very high,…

A: Quasi fixed labor costs are partially fixed and partially variable. Quasi fixed labor cost remains…

Q: With the help of a diagram, make a distinction between substitution effect and income effect on…

A: Income Effect versus Substitution Effect: An Overview  The income effect communicates the effect of…

Q: provide an isoquant/isocost analysis diagram explaining the possible impact of the higher wages on…

A: Iso-cost shows the combination of the inputs which provides the same level of cost. Iso-quant shows…

Q: Define the marginal revenue product of labour. Explain two factors that could cause the marginal…

A: The marginal revenue product of labor (MRP) is a concept used in economics to measure the additional…

Q: Discuss the effect of economic factors on pay of Employees brodly.

A: Companies and business have to set the salaries and compensation, this is one of their several…

Q: A profit-maximizing firm will OMRP W OMRP W OMRP-W OMP MR MRP

A: Marginal revenue product of labor (MRPL) measures the change in a firm's revenue due to hiring…

Q: Tim works 51 hours per week, and his wage is $20 per hour.  If his wage increases to $40 per hour,…

A: Initially, the wage rate is $20 per hour and Tim works 51 hours per week. Now the wage rate…

Q: Define marginal product of labor and value of the marginal product of labor. • Describe how a…

A: The marginal product of labor refers to an addition to the total product when one more unit of labor…

Q: true or false The marginal revenue product of labor is the extra revenue associated with the last…

A: False A marginal revenue product (MRP) is defined as the market value having an one additional…

Q: The price of factor A is GHC20 per units and the price of factor B is GHC300.00 per unit. The…

A: Given: price of factor A =GHC 20 per unitsprice of factor B =GHC 300.00 per unitmarginal product of…

Q: Eldin is a house painter. He can paint three houses per week. He is considering hiring his friend…

A: The objective of the question is to find out the maximum total output possible if Eldin hires…

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Q: What is the theory of compensating differentials? How do compensating differentials help explain…

A: Compensating differentials is a theory in labor economics that explores the relationship between…

Q: Use the following graph, which depicts Mighty Max’s labor demand for his duffel bag business, to…

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Q: Suppose that f(L, K, M)=LKM and the costs of these three inputs are $4, $2, and $1 respectively…

A: It can be defined as a concept that shows the amount of expenditure and any other sacrifice such as…

Q: 1. Suppose a short-run production function is described as Q = 40L 0.04L2 where L is the number of…

A: Marginal Product of Labor(MPL): refers to the change in output (quantity produced) resulting from…

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

A: We have the production function in which the labor is in logarithmic.

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A: Cost minimizing input combination is where isocost line is tangent to isoquant curve.

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A: "Firms hire input to minimize the cost of production upto a point where the ratio of marginal…

Q: 103)What is the value of the marginal product of labour equal to?  A. the change in total profit…

A: A firm will maximise profit at a point where marginal revenue is equal to marginal cost.

Q: Graph the demand for labor as a function of the wage using this data. What happens to the number of…

A: MPL=ΔWorkersΔOutput​​

Q: Consider a manufacturing firm in a labor market that isperfectly competitive. There are two kinds of…

A: Marginal revenue:Marginal revenue is the additional unit that is added to the total revenue. It is…

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Q: A price taking firm with q = K¹/4¹/4 pays w=1/8, r= 1/8 and sells at p = 4. Next month w= 1/2.…

A: An isoquant displays every combination of variables that results in a specific output. All…

Q: Why does the learning curve apply mainly to direct rather than indirect labor?

A: The learning curve implies that labor becomes more efficient after working for several years. This…

Q: the marginal product is given by VMPL=100,000 - 100LD. D Question 1 Compute the equilibrium number…

A: Question 1: In competitive labor market. labor demand curve is VMPL = W => 100,000 - 100LD = W…

Q: QUESTION 3 Refer to the data. If the price of output is $15, and the labor's wage is $225, the…

A: Firm hires optimal no. Of labor where wage = value of marginal  product of labor. Where VMPL = price…

Labor Force Participation Rate analysis

The labor force participation rate analysis calculates the percentage of the working-age population either employed or actively seeking work. It can be anyone in the age category of 16 to 64, on the condition that they are not institutionalized. A high labor force participation rate shows that more people are employed and contributing their wages to the economy, making it a healthy economy. It also shows that there are more people actively looking for employment leading to more hiring options for employers. On the other hand, a low labor force participation rate shows a low number of people employed or looking for work. This leads to an economic setback with fewer wages going into the economy. In such a scenario, employers might have to cut back on profits, lay off employees, or stop the process of hiring.