Table 1. Chocolate chip cookie output and number of workers. Cookies sell for $2.50 each. Ingredients (butter, eggs, flour, nuts, sugar, vanilla how many workers will be hired and how many cookies made if the wage falls to $14) cost $0.50 for each cookie. Workers output( brownies) 1 10 2 34 3 57 4 78 5 97 6 114 7 129 8 142 9 152 10 159 11 163 12 164 13 164 14 163 15 161 16 158 17 154 18 149 19 143 20 136 question: Cookies sell for $2.50 each and each requires $0.50 in ingredients. (The Black Sheep uses quality chocolate!) Graph the demand for labor as a function of the wage using the data in table 1. What happens to the number of workers hired when wages go up? How many workers will be hired and how many cookies made at a wage of $26? How many workers will be hired and how many cookies made if the wage falls to $14?

Suppose that low-productivity workers all have marginal products of 8 and high-productivity workers all have marginal products of 16. The community has equal numbers of each type of worker.  A firm cannot directly tell the difference between the two types of workers. Without any further information, the firm is willing to offer a wage at the average productivity. The local community college offers a course in microeconomics, which does not increase productivity for either type of workers. High-productivity workers think taking this course is as bad as a wage cut of $3, and low-productivity workers think it is as bad as a wage cut of $9. With the certificate, the firm is willing to offer a high wage of $16. Without it, the firm is willing to offer a low wage of $8. But the firm cannot still tell the true productivity. In this case, is it worth for the low-productivity workers taking the course? (Yes, No, or Uncertain)  Thus, this situation will lead to a (pooling, or separating)…

Units of Resource Total Product 1 24 2 42 3 54 4 64 5 72 Help Save & Exit Sub The table shows a total-product schedule for a resource. Assume that the quantities of other resources the firm employ remain constant. If the firm can sell 24 units of output at a price of $1.00 and 42 units of output at a price of $0.80, the marginal revenue product of the second unit of the resource is Multiple Choice $5.40 $7.00. $9.60. $12.20

6A. Define efficiency wage theory. 6B. Construct a labor market with efficiency wages; beneath the market explain what the equilibrium wage represents. (Please draw the labor market!) 6C. Set out the cost function for a firm. 6D. Set out the profit function for a firm. 6E. Explain how an efficiency wage increases profits