Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN: 9781305506725
Author: James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher: Cengage Learning
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Question
Chapter 25, Problem 13CQ
(a):
To determine
Marginal product and the MRP schedule of the workers.
(b):
To determine
Quantity of workers employed by the firm to maximize the profit.
(c):
To determine
Quantity of workers employed by the firm to maximize the profit with wage of $2,500.
(d):
To determine
Quantity of workers employed by the firm.
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Students have asked these similar questions
Leisure Times, Inc., employs skilled workers and capital to install hot tubs. The capital includes the tools and equipment workers
use to construct and install the tubs. The installation services are sold in a competitive market for $1,000 per hot tub. Leisure
Times is able to hire workers for $3,500 per month, including the cost of wages, fringe benefits, and employment taxes. The
increase in the number of hot tubs installed as additional workers are hired is indicated in the following table.
Complete the third and fourth columns of the table by computing the marginal product as the number of employed workers changes and the
marginal revenue product for each unit of labor when the competitive price for a hot tub is $1,000.
Number of Workers
Employed
1
2
3
4
10
5
6
7
8
9
Number of Hot Tubs
Installed
5
12
At this new wage, the firm should hire
18
23
27
30
32
33
34
Marginal
Product
If Leisure Times is able to hire workers for $3,500 per month, it should hire
Suppose the wages of skilled…
A company has 700 employees who work 140 hours a month each. Each worker earns $37 per hour. There is a profitable project the company would like to start, but it would require an additional 42,000 working hours within three months to be completed, and all the employees are fully loaded with other projects. The company does not want to hire new staff; they would like the project to be completed by the current workforce instead.
Given that the wage elasticity of labor supply is 0.65, calculate the hourly wage the company should offer its employees to encourage them to work on the new project.
From 2016 to 2026, the U.S. Bureau of Labor Statistics expects that there will be a fall in demand for
Multiple Choice
occupational therapy assistants.
commercial drivers.
physical therapists.
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word processors and typists.
Chapter 25 Solutions
Economics: Private and Public Choice (MindTap Course List)
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