Refer to Figure 18-4. Assume that W1 = $20 and W2 = $22 and that the market stays in equilibrium. What would happen to the marginal product of labour if the labour demand curve shifts from D1 to D2? The shift decreases the value of the marginal product of labour by $2. The shift increases the value of the marginal product of labour by $2. The shift increases the value of the marginal product of labour by less than $2. The shift decreases the value of the marginal product of labour by more than $2.

You are given a scenario where this a change in a factor of production or a change in demand for an item. You need to explain in sentence form how this would change the demand for labor. See the example and model your answers after how the example is written.

State whether each of the following events will result in a movement along the market supply curve of agricultural labor in the United States or whether it will cause the market supply curve of labor to shift. If the supply curve shifts, indicate whether it will shift to the left or to the right in the provided graph. A decline in the agricultural wage rate will result in a movement along the labor supply curve. An increase in wages outside of agriculture will result in a shift in labor supply curve. the Use the line drawing tool (for a shift in supply) or the arrow drawing tool (for a movement along the supply curve) to indicate the effect on the supply curve for labor as a result of as a result of an increase in wages outside of agriculture by drawing either a new labor supply curve or an arrow overlapping the original supply curve indicating the direction of the movement in Graph A. Carefully follow the instructions above, and only draw the required objects. Wage Graph A S₁ Quantity…

3. Suppose that the wage rate is $16 per hour and the price of the product is $ 2.0. Values for output and labor are in units per hours, as given below: Quantity (Q) Labor ( L) 0. 20 35 47 57 65 70 A. Find the profit-maximizing quantity of labor ( Hint: Extend the table about and calculate MPI and MRPI first and go from there). 345

1. Suppose a short-run production function is described as Q40L 0.04L2 where L is the number of labors used each hour.

Which one of the following statements is incorrect?  a) Equilibrium in a perfectly competitive labour market occurs where the demand for labour is equal to the supply of labour.  b) Equilibrium in a perfectly competitive labour market occurs where the quantity of labour demanded is equal to the quantity of labour supplied.  c) Equilibrium in a perfectly competitive labour market is the result of the interaction between the demand for labour and the supply of labour.  d) The individual supply of labour bends backwards when the income effect becomes stronger than the substitution effect.

Problem 4 Consider a labor market. Quantity supplied is given by Qs=1000+20*P. Quantity demanded is given by Qd=1307.5-0.5*P Plot these curves on a graph with 5 points at P=5,10,15,20,25

Suppose a coal mine's workers can dig two tons of coal per hour and coal sells for $15 per ton. If the coal mine is the only hirer of miners in a local area and faces a labor supply curve of the form:  l = 50w. What is the equilibrium level of employment?  What is the wage paid to minors?

If the substitution effect of a wage change outweighs the income effect of a wage change, the labor-supply curve is A) horizontal. B) upward sloping. C) vertical. D) backward bending.

Martin's Magical Milk Farm produces cow's milk and sells it to a local store for $2.20 per gallon. Agricultural workers in the area are paid a fixed wage rate of $90 per day. Use this information and the information in the table below to answer the questions that follow. What is the marginal product of labour for employing a third worker? What is the value of marginal product of labour for employing a sixth worker? $ Workers 0 1 2 3 4 5 6 Quantity of Milk per day(gallons) 0 70 130 180 220 240 250 Units