Pearson eText Microeconomics -- Instant Access (Pearson+)
9th Edition
ISBN: 9780136879572
Author: Robert Pindyck, Daniel Rubinfeld
Publisher: PEARSON+
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Question
Chapter 14, Problem 1E
(a)
To determine
Profit maximising quantity of labor.
(b)
To determine
New Profit maximising quantity of labor as the wage increases.
(c)
To determine
New Profit maximising quantity of labor as the price increases.
(d)
To determine
Technological breakthrough and the changes.
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Students have asked these similar questions
3. Suppose that the wage rate is $16 per hour and the price of the product is $ 2.0. Values for output
and labor are in units per hours, as given below:
Quantity (Q)
Labor ( L)
0.
20
35
47
57
65
70
A. Find the profit-maximizing quantity of labor ( Hint: Extend the table about and calculate MPI
and MRPI first and go from there).
345
Which of the following can reduce the marginal revenue product of labor?
Select one:
a. A reduction in the demand for firms– products.
b. A reduction in workers– supply of labor to firms.
c. A decrease in firms– demand for inputs that substitute for labor.
d. An increase in the extra output firms gain from adding another unit of labor.
Suppose that a firm's production is given by:
Q= 10L-L² ,
for L= 0 to 5, 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 is 10-2L.
a. How many hours of labor will the firm use when the wage is $30 per day?
b. How many hours of labor will the firm use when the wage is $70 per day?
Chapter 14 Solutions
Pearson eText Microeconomics -- Instant Access (Pearson+)
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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Similar questions
- Which would decrease the demand for a particular type of labor? An increase in the prices of the resources that are complements to that type of labor An increase in the wages of that type of labor X An increase in the demand for the products produced by that type of labor A decrease in the prices of those resources that are complements for that type of laborarrow_forwardComplete the following table with the profit-maximizing quantity of labor each salon will hire, along with the wage it will pay for each hour of labor. Labor Wage Town 1 Town 2 In Town 1, the salon pays a wage that is wage is the marginal value product of the final unit of labor hired, whereas in Town 2, the the marginal value product of the final unit of labor hired. The outcome in with respect to changes in the wage. is farther from that of a competitive market, given that the supply of labor is elastic (at the market equilibrium)arrow_forwardIn the demand for labor for a firm was expressed as L = N x average hours per employee per day. Assume a firm has 50 employees that average 6 hours per day for 300 man-hours per day. A minimum wage is passed and reduces demand to 240 man-hours per day. Answer the following questions. a. How many layoffs are required if average hours per employee are not reduced? Explain. b. If no layoffs are made, what would the average hours per employee be set to? Explain.arrow_forward
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