Macroeconomics
13th Edition
ISBN: 9780134735696
Author: PARKIN, Michael
Publisher: Pearson,
expand_more
expand_more
format_list_bulleted
Question
Chapter 18, Problem 13APA
To determine
The number of labors hired to maximize profit.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Consider the labor market defined by the supply and dema
curves plotted on the following graph.
Use the calculator to help you answer the following question
You will not be graded on any changes you make to the
calculator.
WAGE (Dollars per hour)
20.0
17.5
15.0
12.5
10.0
7.5
5.0
2.5
0
Supply
Demand
125 250 375 500 625
625 750 875 1000
LABOR (Thousands of workers)
Graph Input Tool
Market for Labor
Wage
(Dollars per hour)
Labor Demanded
(Thousands of workers)
Labor Demanded
Labor Supplied
Wage (Thousands of workers) (Thousands of workers) Shortage or Surplus?
$7.50
Binding minimum wages cause frictional unemployment.
2.50
875
Complete the following table with the quantity of labor supp
and demanded if the wage is set at $7.50. Then indicate
whether this wage will result in a shortage or a surplus.
Hint: Be sure to pay attention to the units used on the grap
and in the table. For example, type in 100 for 100,000
workers.
If the minimum wage is set at $10.50, the market will not reach…
Emperor Spring Rolls produces spring rolls.
The market for spring rolls is perfectly competitive, and the price is $2.00 a spring roll. The labor market is
competitive, and the wage rate is $48.00 a day.
Spring rolls
per day
Workers
2
40
3
76
The table shows part of the workers' total product schedule.
4
106
Calculate the marginal product of hiring the fourth worker and the value of the marginal product of the fourth
worker,
130
6.
142
The marginal product of hiring the fourth worker is spring rolls a day.
The value of the marginal product of the fourth worker is
$ a day.
Use the table to answer the following questions
Output of labor
Quantity of output
0
0
1
300
2
550
3
700
4
800
5
850
6
890
a. Calculate the value of the marginal product of labor of the 3rd worker
b.
Chapter 18 Solutions
Macroeconomics
Ch. 18.1 - Prob. 1RQCh. 18.1 - Prob. 2RQCh. 18.1 - Prob. 3RQCh. 18.2 - Prob. 1RQCh. 18.2 - Prob. 2RQCh. 18.2 - Prob. 3RQCh. 18.2 - Prob. 4RQCh. 18.3 - Prob. 1RQCh. 18.3 - Prob. 2RQCh. 18.3 - Prob. 3RQ
Ch. 18.3 - Prob. 4RQCh. 18.3 - Prob. 5RQCh. 18.3 - Prob. 6RQCh. 18.4 - Prob. 1RQCh. 18.4 - Prob. 2RQCh. 18.4 - Prob. 3RQCh. 18.4 - Prob. 4RQCh. 18.4 - Prob. 5RQCh. 18 - Prob. 1SPACh. 18 - Prob. 2SPACh. 18 - Prob. 3SPACh. 18 - Prob. 4SPACh. 18 - Prob. 5SPACh. 18 - Prob. 6SPACh. 18 - Prob. 7SPACh. 18 - Prob. 8SPACh. 18 - Prob. 9SPACh. 18 - Prob. 10SPACh. 18 - Prob. 11APACh. 18 - Prob. 12APACh. 18 - Prob. 13APACh. 18 - Prob. 14APACh. 18 - Prob. 15APACh. 18 - Prob. 16APACh. 18 - Prob. 17APACh. 18 - Prob. 18APACh. 18 - Prob. 19APACh. 18 - Prob. 20APACh. 18 - Prob. 21APACh. 18 - Prob. 22APACh. 18 - Prob. 23APACh. 18 - Prob. 24APACh. 18 - Prob. 25APACh. 18 - Prob. 26APACh. 18 - Prob. 27APA
Knowledge Booster
Similar questions
- Economics Corner Coffe sells coffee at $2 and can rent espresso machines at $500 per month. It has the following production schedule: Calculate the marginal product and the value of the marginal product of each robot. Use only whole numbers. Number of Machines. Total Product Marginal Product. Marginal Product Value 500 2 700 850 950 1000 4 6 1025 How many machines should you rent? $_arrow_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_forwardSubmit Estella decides to set up a lemonade stand on a hot summer day. Before long, Estella's friends all decide they would like to help. The table below shows what happens to the number of glasses of lemonade Estella and her friends can make in an hour. Instructions: Round your answers to 1 decimal places. If you are entering a negative number include a minus sign. Lemonade Stand's Labor and Production Levels Labor (workers) Total Average Product Marginal Product Product 1 (Estella) 13 22 es 3 27 4 28 24 a. Complete the average product and marginal product columns in the table above. b. How many additional glasses of lemonade can Estella produce if she has one friend help her make lemonade instead of making lemonade by herself? glasses c. How many additional glasses of lemonade can Estella produce if she has four friends help her rather than having three friends help her? glasses d. If Estella has four friends help her, on average how many glasses of lemonade can her and her friends…arrow_forward
- The table below lists the marginal product per hour of workers in a light bulb factory. Light bulbs sell for $2 each, and there are no costs to producing them other than labor costs. Compute the value of the marginal product for each additional worker. Instructions: Enter your responses as whole numbers. Number of Workers Marginal Product (Light bulbs per hour) Value of marginal product 1 24 $ 2 22 3 20 4 18 5 16 6 14 7 12 8 10 9 8 10 6 a. If the going hourly wage for factory workers is $24 per hour, then the factory manager should hire workers. If instead the hourly wage for factory workers is $36 per hour, then the factory manager should hire workers. b. Graph the factory's demand for labor. Instructions: Only the two end points need to be plotted to graph the curve. c. Assume that light bulbs instead sell for $3 each. Graph the factory's new demand for labor and in indicate the number of workers the factory manager should…arrow_forwardCalculate the size of the workforce needed for the companyto meet average weekly demand.arrow_forwardTaco King produces tacos The market for tacos is perfectly competitive, and the price is $3.50 a taco. The labor market is competitive, and the wage rate is $105.00 a day The table shows part of the workers total product schedule Calculate the marginal product of hiring the third worker and the value of the marginal product of the third worker The marginal product of hiring the third worker is tacos a day The value of the marginal product of the third worker is Saday 1 C Workers 2 3 4 5 6 Tacos per day 44 80 110 134 146arrow_forward
- Consider the market for labor depicted by the demand and supply curves that follow. Use the calculator to help you answer the following questions. You will not be graded on any changes you make to the calculator. Graph Input Tool Market for Labor 24 I Wage (Dollars per hour) 21 Supply 3.00 Labor Supplied (Thousands of workers) 18 Labor Demanded (Thousands of workers) 1,050 150 15 12 Demand 3 150 300 450 600 750 900 1050 1200 LABOR (Thousands of workers) Complete the following table with the quantity of labor supplied and demanded if the wage is set at $15.00. Then indicate whether this wage will result in a shortage or a surplus. Hint: Be sure to pay attention to the units used on the graph and in the table. For example, type in 100 for 100,000 workers. Labor Demanded Labor Supplied Wage (Thousands of workers) (Thousands of workers) Shortage or Surplus? $15.00 Suppose a senator considers introducing a bill to legislate a minimum hourly wage of $15.00. Which of the following statements…arrow_forwardConsider the labor market defined by the supply and demand curves plotted on the following graph. Use the calculator to help you answer the following questions. You will not be graded on any changes you make to the calculator. WAGE (Dollars per hour) 20.0 17.5 Supply 15.0 12.5 10.0 7.5 5.0 25 Demand 0 125 250 375 500 625 750 LABOR (Thousands of workers) 875 1000 Graph Input Tool Market for Labor Wage (Dollars per hour) 2.50 Labor Demanded (Thousands of workers) 875 Labor Supplied (Thousands of workers) 125 Complete the following table with the quantity of labor supplied and demanded if the wage is set at $12.50. Then indicate whether this wage will result in a shortage or a surplus. Hint: Be sure to pay attention to the units used on the graph and in the table. For example, type in 100 for 100,000 workers. Labor Demanded Labor Supplied Wage (Thousands of workers) (Thousands of workers) Shortage or Surplus? $12.50 Suppose the federal government contemplates a new law that would create a…arrow_forwardI Collado Lumber Company is producing tons of lumber per day. The following table is the costs of production. The managers currently have six machines. The price of output is $5 per unit. The wage of the worker is $55 per worker. From economic theory, we know that the value of the marginal product is price times the marginal product of labor. According to economic theory, a worker should be hired if the value of the marginal product is greater than the marginal cost of hiring a worker. See the table below. Number of machines Number of workers Output The marginal product of labor VMP Wage Marginal cost of hiring an additional worker 6 0 0 xxx xxx $55.00 xxx 6 1 2 2 $10.00 $55.00 $55.00 6 2 14 12 $60.00 $55.00 $55.00 6 3 30 16 $80.00 $55.00 $55.00 6 4 42 12 $60.00 $55.00 $55.00 6 5 50 8 $40.00 $55.00 $55.00 6 6 56 6 $30.00 $55.00 $55.00 6…arrow_forward
- 8. Alicia Gregory owns a foot massage business. She leases 4 computer-controlled massage booths, for each of which she pays $125 per day. She cannot increase the number machines she leases without giving the manufacturer 3 months notice. She can hire as many workers as she wants at a cost of $75 per day per worker. These are the only two inputs she uses in her business. Use this information to fill in the columns in the table below. Quantity of workers 0 1 2 3 4 5 Quantity of foot massages per day 0 10 25 45 60 70 Fixed Variable cost cost vituo loota a pian Total cost 998791 012 0E2 Average total cost AUL COE Average Average Fixed Variable Cost Cost ovode lovsi tugtuo as te sieu to asi ban 180 Marginal costarrow_forwardFord Motors 2010-2019 How does the type of labor used (high-skilled or low-skilled) impact the supply of labor? How do these influence the wage rate in the company?arrow_forwardYou own a landscaping company. You currently have 3 employees and are considering hiring a fourth. Hiring a fourth employee will increase the number of lawns your company can mow from 18 to 20. What is the marginal product of labor of the fourth employee? A) $5 B) 20 lawns C) 2 lawns D) 5 lawnsarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Principles of MicroeconomicsEconomicsISBN:9781305156050Author:N. Gregory MankiwPublisher:Cengage LearningPrinciples of Economics, 7th Edition (MindTap Cou...EconomicsISBN:9781285165875Author:N. Gregory MankiwPublisher:Cengage LearningPrinciples of Microeconomics (MindTap Course List)EconomicsISBN:9781305971493Author:N. Gregory MankiwPublisher:Cengage Learning
- Principles of Economics (MindTap Course List)EconomicsISBN:9781305585126Author:N. Gregory MankiwPublisher:Cengage Learning
Principles of Microeconomics
Economics
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Principles of Economics, 7th Edition (MindTap Cou...
Economics
ISBN:9781285165875
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Principles of Microeconomics (MindTap Course List)
Economics
ISBN:9781305971493
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Principles of Economics (MindTap Course List)
Economics
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:Cengage Learning