ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Transcribed Image Text:The Upstart Company has the following production function.
Number of Workers
10
1
QUESTION 9
3
5
Number of cases produced
10
10
19
26
31
34
If the company maximizes profit by hiring 4 workers, which of the following could be the real wage rate?
A. 2
B. 5
C.6
D.8
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- 11-8. A firm can hire as much labor as it wants at $5 per hour. In return, each worker pro- duces 10 units of output per hour. The firm can sell up to 2,500 units of output each day at $2 per unit, but it cannot sell any more than 2,500 units of output in a day. The firm has no other costs besides labor. (a) How many hours of labor does the firm purchase and how much profit does it earn each day? (b) The firm can choose to pay an efficiency wage. In particular, the firm can choose to pay $6, $7, $8, $9, or $10 per hour, and in exchange, each worker will produce 18, 23, 27, 28, or 29 units of output per hour, respectively. What hourly wage should the firm offer to maximize profits?arrow_forwardPlease no written by hand solutionsarrow_forwardPlease help i want to make sure i am doing these problems correctly thank youarrow_forward
- Table 18-7 Number of Marginal Product Value of Marginal Marginal Workers Output of Labor Product of Labor Wage Profit $500 1 100 AA $1,000 $500 $500 BB 80 $ 800 $500 CC 3 DD 60 EE $500 $100 14 280 FF $ 400 $500 GG 5 HH 20 II $500 JJ Refer to Table 18-7. What is the value for the cell labeled FF? 40 100 400 30arrow_forwardI need help with econ multiple hw questions asap! 103)What is the value of the marginal product of labour equal to? A. the change in total profit caused by the addition of the last worker B. the change in total cost caused by the addition of the last worker C. the change in total revenue caused by the addition of the last worker D. the change in marginal cost caused by the addition of the last worker 102) The labour supply curve is fundamentally a representation of the trade-off people face. What is this trade-off between? A. work and leisure B. work and the wage rate C. technology and the wage rate D. the wage rate and productivityarrow_forwardMarginal Labor Input (workers per week) 25 Marginal Physical Product (output per week) 150 Revenue MR 9.00 26 140 8.50 27 130 8.00 28 120 7.50 29 110 7.00 Refer to the above table. What does the marginal revenue product equal when 26 workers are hired a week? $1190 $8.50 $221 $26 O000arrow_forward
- 8. The law of diminishing marginal product holds that as a variable input increases while other inputs are fixed, ______.a. eventually the fixed inputs will increase at a rate equal to or below the variable increasesb. labor demanded will be high at both very low and very high outputs creating a U-shaped curvec. the marginal revenue product will eventually cause the labor demand curve to turn upwardd. at some point the increase will lose its effectiveness, and additions to output will declinearrow_forwardCharlie owns his own candy factory where he employs individuals to make his world-famous toffee. The graphs show the factory's production for one day. Charlie pays each worker $110 a day and sells his toffee for $0.50 each. Use the accompanying graph to answer the following 2080 1960 Total product questions. 1800 1600 a. Calculate the marginal product of labor (MPL) for the fifth and eighth workers. 1360 1080 760 MPL 5thworker units 400 6. 10 MPL units gth worker Ouantity of workers Quantity of toffee (units)arrow_forwardQUESTION 15 As we hire more workers why does our marginal cost (MC) increase? a. Out of jealousy (of our growing economic prowess) the government will begin to impose fines on us b. Actually, MC is not affected by hiring workers c. Our MPL stays constant, but the wage increases d. Our MPL decreases, but the wage stays constantarrow_forward
- Given the following table, how many workers sh red to maximie profs Labor Marginal Product Laber VMP Wage $32 S100 32 $128 $100 16 $64 $100 4. 5-4 S100 5. -12 S-48 S100 A.arrow_forwardProblem 08-02 algo Refer to the figure to answer two questions. Marginal Revenue Product(per hour) $22 $20 $18 $16 $14 $12 $10 $8 $6 $4 $2 2 worker(s) MRP b. $10 an hour? 4 worker(s) 6 Quantity of Labor(workers per hour) 8 According to the figure, how many workers would be hired if the prevailing wage were Instructions: Enter your responses as a whole number. a. $14 an hour? 10 12 14arrow_forwardDiminishing marginal productivity sets in after the hiring of which worker?arrow_forward
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