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: What is the effect of a wage increase from $35/hour to $40/hour on her weekly labor income? Go back…

A: The own wage elasticity comes out to be 0.4 , which means that the increase in the wage causes the…

Q: s not maxim

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Q: Labor Output Number of workers) (Shovels) 80 2 150 3 210 4 250 270 e blue points (circle symbal) to…

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A: Piece rate and time rate are the two method of wage payment.

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Q: A firm will be better off by hiring an additional worker only when: The overall benefit is greater…

A: A firm will be better off by hiring an additional worker only.

Q: Suppose Fred produces 500 litres of milk every day with 10 workers. The price of milk is $12 per…

A: Given information: Daily production of milk = 500 litres Number of workers = 10 Price of milk = $12…

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A:

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

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

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

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

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A: DWL = $24,000 Tax = $4/unit

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A: The demand for labor is given by the equation as follows.

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A: Number of applications=750Number of openings=10From this,we can say that number of application is 75…

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A: "Since you have asked multiple questions, we will solve first question for you .. If you want any…

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A: The correct answer is given in the second step.

Q: Why is the firm's demand curve for labor the value of the marginal product of labor?

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A: Elasticity is a measure of a variable's sensitivity to a change in another variable; it is most…

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

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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.