EBK INTERMEDIATE MICROECONOMICS AND ITS
12th Edition
ISBN: 9781305176386
Author: Snyder
Publisher: YUZU
expand_more
expand_more
format_list_bulleted
Question
Chapter 13, Problem 13.2P
a
To determine
Number of labor hired when price is $10, $5, $2 and graphical representation of
b)
To determine
Quantity of envelopes when price is $0.10, $0.05 and $0.02.
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
Consider the following table illustrating the hourly production of zidgets.
Furthermore, suppose the wage rate is $15/hour; however, there are two firms, Firm
A and Firm B, where Firm A has fixed cost of $10/hour and Firm B has fixed cost of
$20/hour.
L (workers) Q (units)
1
50
90
3
120
Firm B's total cost of producing
Firm A's total cost of producing 90 zidgets is
90 zidgets.
O greater than
less than
equal to
not enough information
A manager hires labour and rents capital
equipment in a very competitive market.
Currently the wage rate is $12 per hour and
capital is rented at $8 per hour, whereas the
marginal product of labour is 60 units of output
per hour and the marginal product of capital is
45 units of output per hour. Show if the firm is
using the cost-minimizing combination of
labour and capital and give appropriate advice if
necessary.
Suppose a firm produces the following products. Calculate and fill in the missing values in the table below.
(Round your answers to the nearest whole number.)
Marginal product of
Value of marginal
Product
Number of workers
Price per unit
labor
product of labor
A
10
170
$1,200
20
130
$12
25
130
$14
30
90
$1,200
In the above case, when the daily wage of the workers is $1400, then the firm will produce the products
only after reducing the number
of workers employed.
The firm observes with the help of the
that as additional labor is employed, the quantity produced for product A increases.
Chapter 13 Solutions
EBK INTERMEDIATE MICROECONOMICS AND ITS
Ch. 13.1 - Prob. 1MQCh. 13.1 - Prob. 2MQCh. 13.2 - Prob. 1TTACh. 13.2 - Prob. 2TTACh. 13.3 - Prob. 1MQCh. 13.3 - Prob. 2MQCh. 13.5 - Prob. 1MQCh. 13.6 - Prob. 1MQCh. 13.6 - Prob. 1TTACh. 13.6 - Prob. 2TTA
Ch. 13.6 - Prob. 1.1TTACh. 13.6 - Prob. 2.1TTACh. 13 - Prob. 1RQCh. 13 - Prob. 2RQCh. 13 - Prob. 3RQCh. 13 - Prob. 4RQCh. 13 - Prob. 5RQCh. 13 - Prob. 6RQCh. 13 - Prob. 7RQCh. 13 - Prob. 8RQCh. 13 - Prob. 9RQCh. 13 - Prob. 10RQCh. 13 - Prob. 13.1PCh. 13 - Prob. 13.2PCh. 13 - Prob. 13.3PCh. 13 - Prob. 13.4PCh. 13 - Prob. 13.5PCh. 13 - Prob. 13.6PCh. 13 - Prob. 13.7PCh. 13 - Prob. 13.8PCh. 13 - Prob. 13.9PCh. 13 - Prob. 13.10P
Knowledge Booster
Similar questions
- A. Consider a firm who sells output at p=10 and has a short run production function Q(L)=20L-L2. Its wage rate is w=40. 1. Suppose the fırm sells in a perfectly competitive market and is a price taker in the input market, how much labor will it hire to maximize profits? 2. How much wage will it pay? 3. Show the graph of the profit-maximizing level of L and w solved in 1&2.arrow_forwardSuppose that a firm is producing in the short run with output given by: Q = 67L - L2The firm hires labor at a wage of $20 per hour and sells the good in a competitive market at P = $25 per unit. Find the firm’s optimal use of labor.arrow_forwardSuppose that a firm is producing in the short run with output given by: Q = 64L - L2The firm hires labor at a wage of $26 per hour and sells the good in a competitive market at P = $40 per unit. Find the firm’s optimal use of labor.Enter as a value. ROUND TO THE NEAREST WHOLE NUMBER.arrow_forward
- A. Consider a firm who sells output at p=10 and has a short run production function Q(L)=20L-L2. Its wage rate is w=40. Suppose the firm sells in a perfectly competitive market and is a price taker in the input market, how much labor will it hire to maximize profits?arrow_forwardThe 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 376arrow_forwardA 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.arrow_forward
- A manager hires labor and rents capital equipment in a very competitive market. Currently the wage rate is $12 per hour and capital is rented at $8 per hour. If the marginal product of labor is 60 units of output per hour and the marginal product of capital is 45 units of output per hour, is the firm using the cost-minimizing combination of labor and capital? If not, should the firm increase or decrease the amount of capital used in its production process?arrow_forwardA. Consider a firm who sells output at p=10 and has a short run production function Q(L)=20L-L². Its wage rate is w=40. 1. Suppose the firm sells in a perfectly competitive market and is a price taker in the input market, how much labor will it hire to maximize profits? 2. How much wage will it pay? 3. Show the graph of the profit-maximizing level of L and w solved in 1&2.arrow_forwardSuppose that a firm is producing in the short run with output given by: Q = 68L-L2 The firm hires labor at a wage of $25 per hour and sells the good in a competitive market at P = $21 per unit. Find the firm's optimal use of labor. Enter as a value. ROUND TO THE NEAREST WHOLE NUMBER.arrow_forward
- Suppose that a firm's production function is given by: 150- Q = 14L -12 140- 130- 120- 110- 100- for L=0 to 7, where L is labor input per day and Q is output per day. Derive and draw the firm's demand for labor if the firm's output sells for $10 in a competitive market. The marginal product of labor (MP, ) is 14 - 2L. Using the line drawing tool, draw the firm's labor demand curve. Label this curve D, . 70 Carefully follow the instructions above, and only draw the required objects. 50- 30- 20- 10- 10 Quantity of labor (hours) Price of laborarrow_forwardSuppose that the production function of a salmon farming firm is given by F(L) = 4*root(L) and it faces a price for its product of P = 200. Moreover, the firm acts as a monopsony in the labour market - located in a small town in the south - and the supply curve is w(L) = 3 + L. We ask: (a) Determine the output and level of hiring. (b) How many workers should this firm hire from the point of view of the social optimum?arrow_forwardJumbo Enterprises is the sole producer of jumbo jets in the economy. Demand for jets is given by y=2122-201p, where y is the number of jets and p is the price of a jet. The number of jets that Jumbo produces is a function of the number of engineers (N) that it hires. This function is given by y=0.8N. Engineers are hired in a competitive labor market, where the wage is equal to $6. Find Jumbo Enterprise's profit-maximizing choice of N. Answer:arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Principles of Microeconomics (MindTap Course List)EconomicsISBN:9781305971493Author:N. Gregory MankiwPublisher:Cengage Learning
Principles of Microeconomics (MindTap Course List)
Economics
ISBN:9781305971493
Author:N. Gregory Mankiw
Publisher:Cengage Learning