Econ Micro (book Only)
6th Edition
ISBN: 9781337408066
Author: William A. McEachern
Publisher: Cengage Learning
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Question
Chapter 11, Problem 9P
To determine
The maximum weekly wage when a firm would hire an additional worker
Concept Introduction:
Full-time worker: An individual who works the minimum number of hours set by his/her employer.
Maximum weekly wage: This is a legal limit set by the government which defines how much income an individual can earn weekly.
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Question 2
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Question 1
The market for drones is perfectly competitive. Labor is the only variable input. The fixed cost is $500.
Based on the information in the table below, what is the Marginal Product of Labour when Q-300? Enter a number only, drop the $ sign.
Wage rate $100 per unit of Labour
Quantity of Quantity of
Labour
Output
2
49
119
300
15
26
51
400
Suppose you are considering hiring another worker. Also assume that you are at a firm that is operating at a point where the marginal product of labor is 5 and the price of each unit of labor is $2, and the marginal product of capital is 20 and the price of each unit of capital is $10. Should you hire another worker?
If you hire another worker, what will happen to the marginal product of labor and why?
Chapter 11 Solutions
Econ Micro (book Only)
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