Profit-maximizing firms will hire additional units of a resource up to the point at which the marginal revenue product (MRP) of the resource equals its price.  With multiple inputs, firms will expand their use of each until the marginal product divided by the price (MP/P) is equal across all inputs. What is the link between marginal revenue product and wages?

Why wages differ For each of the scenarios in the following table, indicate the most likely reason for the difference in earnings. Scenario Differences in Human Capital Compensating Differential Differences in Natural Ability Labour Unions Major-league baseball pitchers earn more than minor-league baseball pitchers.           A law firm hires Simone, a recent graduate from law school, and pays her an annual wage of $40,000. It also hires Manuel, a second-year law student, and pays him an annual wage of $30,000. Simone and Manuel were born in the same country, attended the same university, and studied in the same graduate program.           Two automotive technicians have the same amount of schooling and work experience, but earn different wages. The first works the day shift for an auto manufacturer factory for an annual wage of $54,000 per year, and the second works the night shift for the same company for an annual wage of $63,000 per year.

Consider the labor market for webpage designers illustrated in the graph to the right. What is the equilibrium wage? per hour. (Enter a numeric responses using an integer.) Suppose fewer firms demand webpages. Use the line drawing tool to draw either a new labor supply curve or a new labor demand curve that shows how this affects the labor market for webpage designers. Carefully follow the instructions above, and only draw the required objects. As a result of this change, the equilibrium wage increases decreases Wage (dollars per hour) 300- 275- 250- 225- 200- 175- 150- 125- 100- 75- 50- 25- Market for webpage designers Labor supply₁ X Labor demand₁ 20 40 80 100 120 140 60 Quantity of labor Q Ly ✪

Dolls are fabricated in a process with two resources. The first resource has a capacity of 1.5 dolls per hour. The capacity of the second resource is 0.99 dolls per hour. The first resource has 7 workers and the second resource has 9 workers. Demand for this process is 1.1 dolls per hour. Wages are $24 per hour. Instruction: Round your answer to two decimal places. What is the cost of direct labor (in $)? per unit

Question 52 Which of the following does not cause the labor demand curve to shift? Group of answer choices Changes in the wage rate Changes in the price of the firm’s good or service Increases in technology Increases in the firm’s capital

According to the Economics Policy Institute (Mishel and Wolfe, 2019) CEO pay has grown 940% since 1978 while the compensation of the average worker has only risen 12%. While you can easily find sources that provide statistics that conflict with these numbers, you would be hard pressed to find any credible source that refutes the idea that the rate of pay of CEO’s and other upper-level managers has not dramatically increased relative to an organization’s lower-level employees in just about any 10 or more year period over the past 60 years. In the world of Adam Smith, the “invisible hand” of the free market capitalistic model would address inequities/out of balances. Are the forces represented by the “invisible hand” working? Why or why not? Is there an ethical dimension to the discussion of upper-level manager compensation? Why or why not? How does (or does it?) levels of pay of upper management impact the rest of us commoners?

Q8 In the Canadian labour market, demand for labour can be impacted by elasticity of the product in which  labour is an input. Suppose that the labour cost to total cost ratio in industry A (cannabis sector) is 14 percent, while in industry B (fertilizer sector)  it is 68 percent. Other things equal, labour demand will be Multiple Choice   more elastic in industry B than in A.   constant in both industries A and B.   relatively elastic in both industries A and B.   relatively inelastic in both industries A and B.   more elastic in industry A than in B.

Which of the following is a reason why some firms do not use commission pay?  It gives workers incentive to produce more. It increases firm profits. It is difficult to measure the output and attribute output to a particular worker. The best workers stay and less productive workers leave.

The below table shows the output associated with each quantity of labor, assuming the level of capital is fixed. Assume the price of a unit of output is $2 and the wage is equal to $11. How many workers would the firm hire? Show your work. Number of Workers Output per hour 0 0 1 8 2 14 3 18 4 20

The marginal product of labor for a firm is given by: MPL = 112 - 3H, where H is the number of hours they hire workers to work. For example, the marginal product of the first hour of labor would be 112 - 3*1, and the marginal product of the second hour of labor would be 112 - 3*2, and so on. If the market wage is $18 per hour, how many hours of labor will this firm hire? Round your final answer to two decimal places.