TC = 500 + WL ( where TC is the Total Cost, 500 is the Fixed Cost, W is the wage and L is the Labor). What will be MC (Marginal Cost) if Q (Quantity / Output) from Q* (Quantity at Market Price) to 1.2Q*, given the workers' number increased from 5 to 8, however, wage rate remains the same at W=10. What will be the marginal productivity? If the market becomes a monopoly, what will happen to the market price, market quantity, and social welfare?

TC = 500 + WL ( where TC is the Total Cost, 500 is the Fixed Cost, W is the wage and L is the Labor). What will be MC (Marginal Cost) if Q (Quantity / Output) from Q* (Quantity at Market Price) to 1.2Q*, given the workers' number increased from 5 to 8, however, wage rate remains the same at W=10. What will be the marginal productivity? If the market becomes a monopoly, what will happen to the market price, market quantity, and social welfare?

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter16: Labor Markets

Section: Chapter Questions

Problem 16.7P

See similar textbooks

Similar questions

The outputs of firms 1 and 2 are given by Q = 3L and Q2 =4L respectively 0.6 0.6 where the L's stand for labour (measured in hours). If the total labour supply is 350 what would be the total output (Q, + Q2) if (a) labour was split equally between the two firms. (b) labour was allocated efficiently between the two firms. MacBook Air
If the hourly wage for workers is $60 and the firm's price per product is $12, how many workers will be hired if the productivity (products made per hour) is as follows: 1 worker = 10 products, 2 workers = 17 products, 3 workers = 23 products, 4 workers = 28 products?
2. A production process using two inputs, labor and capital is Q = 5LK where Q is output per day. MPK = 5L and MPL = 5K. The wage (w) = $150 per hour and (r) = $1,000 per hour. Determine the least cost combination of K and L when the desired output is 1,000 What is the minimum cost of producing 1,000 per day?
A manager hires a labor and rents capital equipment in a very competitive market. Currently the wage rate is Gh₵ 2 per hour and capital is rented at Gh₵ 5per hour, the unit price of the product is Gh₵ 0.25 and total cost is1000. Suppose the firm’s production is as follows: Q =14K⁰L⁰+10 Required What is the amount of labor and capital the firm should employ in order to maximize profit. What is the maximum profit.
Blast! Turns out child workers are not as productive as adults that I was basing my decision off of. Basically, they are two minutes slower across the board: # of Concession Stand Employees Average Wait Time (Minutes) Average Wait Time (Minutes) with Child Employees 1 18 20 2 8 10 3 6 8 4 5 7 5 7 9 At the daily rate of $12.50 per child worker per day, how many should I hire? (If you are doing this correctly you are thinking with marginal analysis, and if so, might be wondering if this is a trick question. It is not, it is quite straight forward precisely because of marginal analysis!)
For the equations below, q is the total number of units produced per day by m employees of a manufacturer, and p is the price per unit at which the q units are sold. Find the marginal-revenue product for the given value of m. q= 2 500m - m² 50 -, p = 0.8q +90; m = 70 The marginal-revenue product when m = 70 is. (Type an integer or a decimal.)
In this question you will derive a simple labour demand curve. Suppose that the number of calculators a firm can produce per hour (TP) given a certain number of workers (L), is given by: TP = 396 ln(L +17) + 13L The cost of using each worker is just their hourly wage (w). So the total labour cost is C = wL. If the price of each calculator is $11, find the profit maximizing wage as a function of number of workers used (L). W=
The market for drones is perfectly competitive. Labor is the only variable input. The fixed cost is $371. Based on the information in the table below, what is the total cost when Q=300? Enter a number only, drop the $ sign. Wage rate =$100 per unit of Labour Quantity Quantity of of Labour Output 3 86 14 179 30 300 54 433
The market for drones is perfectly competitive. Labor is the only variable input. The fixed cost is $f]. Based on the information in the table below, what is the Marginal Cost when Q=300? Enter a number only, drop the $ sign. Wage rate =$100 per unit of Labour Quantity Quantity of of Labour Output 7 69 14 143 33 300 50 376
Suppose that Zamboni Enterprises is the only company that sells zambonis (ice resurfacing machines). To produce the machines, the company hires assembly workers. Since these workers can work in many different companies, Zamboni Enterprises must pay them the market wage, which is equal to $6. The number of zambonis that the company produces, which is denoted by y, is proportional to the number of assembly workers that it hires, which are denoted by N; in particular, the production function is given by y=0.76N. The economywide demand for zambonis is given by the following demand function: y=2191-219p, where y is the number of zambonis that consumers are willing to purchase at price p. Given this market structure, how many assembly workers will Zamboni Enterprises choose to hire? How many zambonis will Zamboni Enterprises produce and sell?
Suppose that Zamboni Enterprises is the only company that sells zambonis (ice resurfacing machines). To produce the machines, the company hires assembly workers. Since these workers can work in many different companies, Zamboni Enterprises must pay them the market wage, which is equal to $6. The number of zambonis that the company produces, which is denoted by y, is proportional to the number of assembly workers that it hires, which are denoted by N; in particular, the production function is given by y=0.76N. The economywide demand for zambonis is given by the following demand function: y=2191-219p, where y is the number of zambonis that consumers are willing to purchase at price p. Given this market structure, how many assembly workers will Zamboni Enterprises choose to hire? How many zambonis will Zamboni Enterprises produce and sell? What will be the price of a zamboni? If the market for zambonis were competitive, how many zambonis would be produced? If the market for…
Suppose that Zamboni Enterprises is the only company that sells zambonis (ice resurfacing machines). To produce the machines, the company hires assembly workers. Since these workers can work in many different companies, Zamboni Enterprises must pay them the market wage, which is equal to $6. The number of zambonis that the company produces, which is denoted by y, is proportional to the number of assembly workers that it hires, which are denoted by N; in particular, the production function is given by y=0.76N. The economywide demand for zambonis is given by the following demand function: y=2191-219p, where y is the number of zambonis that consumers are willing to purchase at price p. If the market for zambonis were competitive, how many zambonis would be produced? If the market for zambonis were competitive, how many assembly workers would be hired? If the market for zambonis were competitive, at what price would zambonis be sold?