Refer to the diagram to the right: Land is the other (fixed) factor of production. Currently the real wage is $30 Calculate the change in land rents due to a $5 increase in the real wage A Land rents $ (Enter your response rounded to the nearest dollar. Be sure to include the minus sign if necessary.) Calculate the change to the total wage bill (total payment to labor) A Total payment to labor - $ (Enter your response rounded to the nearest dollar. Be sure to include the minus sign if necessary) 60 55- 50- 45 40- 35 30- 25 20- 15- 10- 54 of Marginal product of labor, MPL Real Wage Real Wage MPL 10 20 30 40 50 60 70 80 90 100 1 Labor, L

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 demand for labor.   You own a sports equipment manufacturing firm. You were just informed rent at your warehouse space would double.

Suppose that this conveyor-manufacturing firm has another location and would like you to evaluate the input mix decisions at this new location. Here is all you know about the newlocation. The marginal rate of technical substitution is currently 0.5. The marginal product of labor at its target level of output is 60 rollers per hour. What is the marginal product of capital? Ifthe rental rate for capital is $24 per hours at this location and the wage paid to labor is $12 per hour, could this location be minimizing the costs of producing its target level of output? Explain briefly.

The table below shows levels of employment (Labor), the marginal product at each of those levels, and the price at which the firm can sell output in a perfectly competitive market. Labor Marginal Product of Labor Price of the Product Value of the Marginal Product 1 7 $3 6 $3 3 $3 4 4 $3 3 $3 a) Complete the table finding the Value of the Marginal Product (show your work!). b) If the wage rate is $15, what is the firm's profit maximizing level of employment? JUSTIFY your answer! 2.

Why might a labor supply curve be backward bending? Explain your answer using the concepts of the income effect and the substitution effect. (You can explain your answer using words or you can draw a graph accompanied with a brief explanation)

Need help with this. Thanks!   Kyoko currently earns a_________(nominal or real) wage of $12.00 per hour; in other words, the amount of her paycheck each week is $12.00 per hour times the number of hours she works. Suppose the price of milk is $2.50 per gallon; in this case, Kyoko's_________(nominal or real) wage, in terms of the amount of milk she can buy with her paycheck, is__________ gallons of milk per hour. When workers and firms negotiate compensation packages, they have expectations about the price level (and changes in the price level) and agree on a_______(nominal or real) wage with those expectations in mind. If the price level turns out to be higher than expected, a worker's________(nominal or real) wage is_______(higher or lower) than both the worker and employer expected when they agreed to the wage. Kyoko and her employer both expected inflation to be 4% between 2012 and 2013, so they agreed, in a two-year contract, that she would earn $12.00 per hour in 2012 and…

Consider a company operating in a competitive market. The company sells units of output and receives a price of $30 per unit, and pays a daily market wage of $285 to each worker it employs. In the following table, complete the column for the value of the marginal product of labor (VMPL) at each quantity of workers. Value of the Marginal Product of Labor Labor Output Marginal Product of Labor (Number of workers) (Units of output) (Units of output) (Dollars) WAGE (Dollars per worker) 500 450 On the following graph, use the blue points (circle symbol) to plot the firm's labor demand curve. Then, use the orange line (square symbols) to show the wage rate. (Note: If you cannot place the wage rate at the level you want, move the two end points individually.) 400 Hint: Remember to plot each point halfway between the two integers. For example, when the number of workers increases from 0 to 1, the value of the marginal product for the first worker should be plotted with a horizontal coordinate…

Lesson 8 - Costs Question 6