Microeconomics
21st Edition
ISBN: 9781259915727
Author: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn Dr.
Publisher: McGraw-Hill Education
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Question
Chapter 23, Problem 12DQ
Sub Part (a):
To determine
The equilibrium wage rate and the quantity wage ratio.
Sub Part (b):
To determine
The equilibrium wage rate and the quantity of workers of Hispanicise.
Sub Part (c):
To determine
The wage ratio.
Sub part (d):
To determine
Which workers would be hired.
Sub part (e):
To determine
The new equilibrium wage rate and the quantity wage ratio.
Sub part (f):
To determine
The equilibrium wage rate and the quantity wage ratio.
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45. Consider the following two statements:
(1) According to the Blinder-Oaxaca decomposition of the wage gap between two groups of
workers, differences in rewards for characteristics are considered to be evidence of
discrimination.
(2) Correspondence studies will never underestimate the extent of discrimination.
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O a. Both statements are incorrect.
O b. Statement (2) is correct, statement (1) is incorrect.
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Time left 0:30:14
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8. All of the following can be deemed as a tradeoff between equity and efficiency except
O a. unemployment compensation programs.
O b. students working individually on a project except collective group work.
Oc. disability programs.
Od. welfare programs.
Suppose that the wage rate is $13 per hour and the price of the product is $2. Values for output and labor are in units per hour.
b.
L
0.
24
44
60
72
80
4
84
Find the profit-maximizing quantity of labor. (Assume the firm can hire up to 6 workers.)
The profit-maximizing quantity of labor is worker(s). (Enter a numeric response using an integer.)
Suppose that the price of the product remains $2 but that the wage rate increases to $36. Find the new profit maximizing level of L
The profit-maximizing quantity of labor is
worker(s).
Suppose that the price of the product decreases to $1 and the wage remains at $13 per hour. Find the new profit-maximizing L.
Brenda owns a construction company that employs bricklayers and other skilled tradesmen. Her firm’s MRP for bricklayers is $22.25 per hour for each of the first seven bricklayers, $18.50 for an eighth bricklayer, and $17.75 for a ninth bricklayer. Given that she is a price taker when hiring bricklayers, how many bricklayers will she hire if the market equilibrium wage for bricklayers is $18.00 per hour? a. Zero. b. Seven. c. Eight. d. Nine. e. More information is required to answer this question
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