EP ECONOMICS,AP EDITION-CONNECT ACCESS
20th Edition
ISBN: 9780021403455
Author: McConnell
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Concept explainers
Question
Chapter 15, Problem 1DQ
To determine
The reason for a higher level of wage in the developed country.
Expert Solution & Answer
Explanation of Solution
In general, the wage level in the developed country is higher than the other country. The main reason for this increase in the level of wage is the higher level of labor productivity. Wage is determined by the marginal productivity of the labor. The output per worker is higher in the developed country. The reason for this high productivity is abundant natural resource relative to the labor size and the capital per worker is very high. The developed country uses advance technology, provides trainings. These factors lead to an increase in the marginal productivity of the labor that causes an increase in the wage level.
Economics Concept Introduction
Concept introduction:
Marginal productive wage theory: The marginal productive wage theory states that the wage of the labor should be equal to the marginal productivity of the labor.
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Students have asked these similar questions
You are an employer seeking to fill a vacant position on an assembly line. Are you more concemed with the average product of labor or the marginal product of labor
for the last person hired?
O A. The marginal product of labor because to maximize profits, you will want to hire labor up to but not exceeding the point where labor begins to experience
diminishing marginal returns.
O B. The average product of labor because productivity is maximized when average product is maximized This determines the output where revenue and profit
are maximized.
O C. The average product of labor because to maximize profits, you will want to hire labor up to but not exceeding the point where labor begins to experience
diminishing marginal returns
O D. The marginal product because it measures the effect the last person hired has on output, or total product. This helps determine the revenue generated by
hiring an another worker, which can be compared with the cost of hiring an another worker
Suppose that marginal product doubled while product price tripled in the table belo
Marginal
Marginal
Product (MP)
Units of
Total Product
Product Price | Total Revenue
Revenue
Resource
(Output)
Product
$2
$0
1
7
7
2
14
$14
2
13
6.
2
26
12
3
18
2
36
10
4
22
2
44
8
25
50
6
27
2
2
54
4
7
28
1
56
LO
The table below shows your production function relating output per number of hired workers (assume no changes to the
capital and size of the convenient store.
Use the given information to find the Marginal Product of Labor.
Workers Total Output
0
0
1
2
3
4
LO
5
90
149
182
197
202
Marginal Product
A
OHire a number of workers where marginal product is positive
OHire a number of workers where marginal product is negative
OHire the number of workers where marginal product is maximized
—
←
What should determine the number of workers to hire if your goal is to maximize efficiency?
OHire as many employees as possible
OHire the minimum number of workers
Chapter 15 Solutions
EP ECONOMICS,AP EDITION-CONNECT ACCESS
Ch. 15.3 - Prob. 1QQCh. 15.3 - Prob. 2QQCh. 15.3 - Prob. 3QQCh. 15.3 - Prob. 4QQCh. 15.A - Prob. 1ADQCh. 15.A - Prob. 2ADQCh. 15.A - Prob. 3ADQCh. 15.A - Prob. 4ADQCh. 15.A - Prob. 5ADQCh. 15.A - Prob. 1ARQ
Ch. 15.A - Prob. 2ARQCh. 15.A - Prob. 3ARQCh. 15.A - Prob. 4ARQCh. 15.A - Prob. 1APCh. 15.A - Prob. 2APCh. 15 - Prob. 1DQCh. 15 - Prob. 2DQCh. 15 - Prob. 3DQCh. 15 - Prob. 4DQCh. 15 - Prob. 5DQCh. 15 - Prob. 6DQCh. 15 - Prob. 7DQCh. 15 - Prob. 8DQCh. 15 - Prob. 9DQCh. 15 - Prob. 10DQCh. 15 - Prob. 1RQCh. 15 - Prob. 2RQCh. 15 - Prob. 3RQCh. 15 - Prob. 4RQCh. 15 - Prob. 5RQCh. 15 - Prob. 6RQCh. 15 - Prob. 7RQCh. 15 - Prob. 1PCh. 15 - Prob. 2PCh. 15 - Prob. 3PCh. 15 - Prob. 4PCh. 15 - Prob. 5P
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