Give four explanations for why firms might find ii profitable lo pay wages above the level that balances quantity of labor supplied and quantity oflabor demanded.
Q: Assuming working at home gives you a wage of $100, what would your wage be working in the cubicle…
A: Consumers' preferences for bundles of commodities or services are measured by the utility function.…
Q: À minimum wage set abc A. increases both en O B. increases unemp O C. decreases unem O D. raises the…
A: Labor supply is positively related to the wage rate. An increase in the wage rate will increase the…
Q: In a particular industry, labor supply is ES = 10 + w and labor demand is ED = 40 -4w, where E is…
A: Labor supply, ES = 10 + w Labor demand, ED = 40 – 4w
Q: On the following graph, use the green line (triangle symbol) to show the effect this employer…
A: Economic equilibrium is a condition or state where economic powers are adjusted. As a result,…
Q: 5. Suppose the production function is given by f(E, K) $2 and the price for a unit of capital is…
A: Every firm wants to earn maximum profit, to earn maximum profit firms minimize the cost of producing…
Q: Suppose that the president proposes a new lawaimed at reducing healthcare costs: All Americans…
A: This excercise demonstrates the importance of the shortage of demand and supply. The cause and have…
Q: Suppose a firm produces cables for video games using workers according to the table below and that…
A: The demand for labor is given by the equation as follows.
Q: 280 ‚Marginal Factor Cost Supply 154 124 112 91 70 Marginal Revenue Product 28 140 210 280320 420…
A: f. Any profit maximizing firm employs labor only up to, when wage rate is equal to marginal revenue…
Q: es frequently push back from the gate on time, but then wait 2 feet away from the gate until it is…
A: How consumers and organizations answer market signals like costs and monetary advantages.
Q: k.ac.uk/mod/quiz/attempt.php.atter QUEST Imagine that you work for 40 hours per week at the wage…
A: Since the wage rate has increased by 100% so it will get doubled. If the person works for more…
Q: The imposition of a minimum wage tends to a. create deadweight loss. O b.cause unemployment. O C.…
A: The lowest level of remuneration or price floor that is being paid to employees for doing the work…
Q: Use the table below to calculate the accounting and economic profit for Abner's Apple Art. Item…
A: The above-given values are all in thousands.
Q: the following supply/demand diagram of the labor market and please fill in all of the blanks below.…
A: Equilibrium in the labor market occurs at the intersection point of labor demand and labor supply…
Q: Lets assume this situation is real! Dissimliar to Lyft, where drivers have their own vehicles, Ebay…
A: All the requested parts have been solved below.
Q: In the diagram, a minimum wage of $7 causes an opportunity for firms to exploit workers. The…
A: Equilibrium is achieved at the output level where Qs equals Qd.
Q: Suppose BMW runs a great ad campaign thatincreases demand and drives up the price of BMWs.What do…
A: A market is a place where the buyers and sellers interact with each other and the exchange of goods…
Q: A firm uses both labor and machines in production. Explain why an increase in the average wage rate…
A: As the Wage rate rises, the labour demand curve (the marginal sales product curve) moves up and to…
Q: 2. Chicken Hut faces perfectly elastic demand for chicken dinners at a price of $6 per dinner. The…
A: The correct answer is given in the second step.
Q: 3 Do 10 20 30 40 50 60 Quantity (millions of hours per year) In the figure above, Do is the demand…
A: The demand for labor curve shows how many worker a firm will employ at each given wage rate. And the…
Q: The production function of a small firm that produces t-shirts is given by the table below . 10 12…
A: "As per Bartleby guidelines, we will solve the first three questions for you. If you want any…
Q: can produce 100 cookies per day, the cost of the average worker is $32 per day, and the price of a…
A: The profit maximizing condition is given as MRP( marginal revenue product) = wage
Q: Suppose the marginal product of labor for a firm is given by the figure found here:…
A:
Q: 8. Refer to the information provided in Figure 3.11 below to answer the following question(s). $ 4…
A: Given figure, The following concepts are defined with the help of this diagram
Q: 1. The market price for tomatoes is $2/pound. Lynn is too small to influence the price of tomatoes.…
A: The labour demand of a business is the number of labour hours that the business will recruit in view…
Q: 10. Which of the following statements is NOT true? Division of labour allows a worker to be employed…
A: Hi Student, Thanks or posting the question. As per the guideline, we are providing answer for the…
Q: Suppose that labor is the only input used by aperfectly competitive firm. The firm’s…
A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: A technological advance that increases the marginalproduct of labor shifts the labor- _________…
A: Supply is the volume of products that sellers are willing to sell in the market, at a given price.
Q: A minimum wage set above the equilibrium wage I. increases the supply of labor. II. increases the…
A: first consider the difference between the quantity supplied and supply. whenever there is change in…
Q: A firm faces a perfectly elastic demand for its output at a price of $6 per unit of output. The…
A: The marginal-cost function(MC) is given here. The demand(DD) that the firms faces is…
Q: Town 1 Town 2 30 ME Labor Supply 27 27 24 21 21 Labor Supply 18 18 15 Labor Demand Labor Demand 1. 6…
A: Given : Town 1 and Town 2's labor supply and labor demand is given. Table of profit maximization…
Q: Describe how the firm sets an efficiency wage above the competitive level. Why are there no market…
A: The efficiency wage theory states that higher wage rates given to the workers would tend to increase…
Q: nside à workers and computers. Explain wh neans if skilled workers and computers are complements in…
A: Skilled workers and Computers are two inputs and Complement each other to production. Two inputs are…
Q: 1. The market price for tomatoes is $2/pound. Lynn is too small to influence the price of tomatoes.…
A: The firm keeps the demand for labor as per the marginal productivity of the labor. The firm during…
Q: Wage $10 Quantity of labor 40 60 80 If this market is initiallyin equilibrium when a $10 minimum…
A: Equilibrium occurs where quantity demanded is equal to quantity supplied that is at the intersection…
Q: Maria's Umbrellas has a production function given by Q = L0.SKO.5. The wage (W) is $80 per day and…
A: Maximization occurs when the following relation is fulfilled MPL/MPK = w/r
Q: The value of marginal product of labor increases if OA. more of the good is produced OB. more labor…
A: Value of the marginal product is the demand for the input.
Q: In Houston, 150 people are willing to work an hour as cashiers if the wage is $20 per ha each…
A: in Houston 150 people are willing to work an hour as cashiers if the wage is $20 per hour. For each…
Q: An increase in the minimum wage would O a. decrease the quantity of labor demanded while increasing…
A: A minimum wage is the lowest remuneration that employers can legally pay their employees—the price…
Q: When the marginal revenue product of labor (MRPL) is greater than the wage (W) then: A. The firm…
A: The marginal product of labor is the change in revenue resulting from an additional unit of labor.…
Q: A labour strike to negotiate a higher wage has been successful in increasing the wages of labourers…
A: Labours strike to negotiate a higher wage has been successful in increasing the wage of labour hence…
Q: a) Calculate the equilibrium level of wages under the following situation:a) Situation I Wages…
A: "Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Explain how to find the equilibrium priceand quantity for a factor of production.
A: A rational producer will be in equilibrium when output is maximized within a given cost or cost is…
Q: 160 Мarginal Factor Cost Ayddng 88 76 64 52 34 Marginal Revenue Product 16 30 60 80 100 120 140 160…
A: a. The wage rate is given to be $34 in the economy. From the given diagram, the quantity of loggers…
Q: A.Graph the marginal revenue product of labour. The slope of this curve is equal to 9.6 The vertical…
A: A. In this question:- The market supply is L=2.2w the product market is competitive and product…
Q: The nation of Ectenia has 20 competitive appleorchards, all of which sell apples at the world…
A: "Since you have asked a question with multiple sub-parts, we will solve the first three sub-parts…
Q: At the current starting salary of $18,000 per year, the number of new business school graduates…
A: The markets are the place where the buyers and the sellers tend to interact with each other, as they…
Q: Walmart, the country's largest retailer by revenue, has long been known for paying its truck drivers…
A: A wage is a sum of money paid by an employer to an employee for work completed over a certain period…
Q: Suppose that Congress caps executive pay at a level below the equilibrium. The quantity of…
A: Since you have asked multiple questions, and according to policy, we can solve only 1 question, and…
Give four explanations for why firms might find ii profitable lo pay wages
above the level that balances quantity of labor supplied and quantity of
labor demanded.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- What is the formula for the wage elasticity of labor supply?Name some factors that can cause a shift in the demand curve in labor markets.A firms marginal cost curve above the average variable cost curve is equal to the films individual supply curve. This means that every time a firm receives a price from the market it will be willing to supply the amount of output where the price equals marginal cost. What happens to the films individual supply curve if marginal costs increase?
- What is die price commonly called in the labor market?suppose Fred produces 500 litres of milk every day with 10 workers. the price of milk is $12 per litre, and each worker is paid $550 daily. if th margin product of the last worker employed is 40 litres of milk, explain whether Fred is maximizing his profit. If not, can Fred incrase his profit by employing more or fewer workers? If Fred buys more dairy cattles, how will it affect his demand for labor? Explain with a diagram.2:32 PM O O ® ……. ll ll 6 69 ME ASSIGNMENT - Read-only Sign in to edit and save changes to this file. 1. Suppose that a demand function for computer is Od = 30- 15p, and a supply function for computer is C = 40+25p. Calculate the price and the quantity at equilbrium 2. Name the return to scale in each column Units of Canital Units of Labour Tatal Outnut % Change in Inputs % Change in Output Returns to Output Scale e 20 150 3000 7500 12000 100 50 33 25 40 300 150 60 450 60 B0 800 16000 33 100 750 18000 13 3. S.NO TOTAL MARGINAL | RETURNS TO PRODUCT PRODUCT SCALE 18 8 2 3 28 10 10 38 48 56 10 15 6 62 6 4 Complete the following table Marginal Average Average Average cost MC Output Fixed Variable Total cost cost AFC variabie cost AC cost cost F cost AVC 84 1 84 10 2 84 21 3 84 28 4 84 36 5 84 54 6 84 81 7 84 108 84 136 84 178 10 84 226 ...
- Consider a manufacturing firm in a labor market that isperfectly competitive. There are two kinds of workers: productiveworkers whose marginal revenue product is $48,000 per year, andlazy workers whose marginal revenue product is $40,000 per year. Itis difficult for the firm to differentiate between productive andlazy workers. A local college offers a new yearlong astronomy course. Althoughthe cost of tuition is the same for both types of workers, thepsychic cost of having to work hard and get a passing grade islower for productive workers because they are able to learn morequickly than lazy workers. Therefore, the cost of taking the class(including the cost of tuition as well as the psychic cost) is$5,000 per year for a productive worker and $10,000 per year for alazy worker. Because astronomy has little relevance tomanufacturing, taking the class does not increase or decrease aworker's productivity. The firm uses the class as a way to differentiate betweenproductive and lazy…To maximize profit, a firm OA. uses the quantity of land at which the rental rate equals the value of marginal product of land OB. uses the quantity of capital at which the suppliers' expected profit equals the value of marginal product of capital O c. uses the quantity of capital at which the marginal revenue equals the value of marginal product of capital O D. balances the rental rate of capital against the wage rate of labor 7 5 > 6 M & 7 O * 8 O Next C NS Co ho Miha NS. ythor ers [T Camp.Amanda owns a small bakery in the perfectly competitive pastry industry. She is considering whether to hire an additional pastry chef. The wage rate for pastry chefs is $1,000 per week; the marginal product of an additional pastry chef is 1,000 pastries per week; and the unit price of pastries is $1.25. Amanda should: O hire the additional pastry chef. not hire the additional pastry chef. raise the price of the pastries. O Not enough information is given to answer the question.
- Gopher Excavators produces shovels in a small factory and sells the shovels in a competitive market. The following table shows the company's production function: Labor Output (Shovels) (Number of workers) 0 0 1 100 2 195 3 275 4 340 5 380 Use the blue points (circle symbol) to plot the production function for Gopher Excavators on the following graph. (?) 400 O -O- 360 Production Function 320 280 240 200 160 120 80 40 0 O 0 2 2 5 LABOR (Number of workers) Calculate the marginal product of labor (MPL) of each worker, and then plot the MPL curve on the following graph using the blue points (circle symbol). Note: Remember to plot each point halfway between two integers. For example, when the number of workers increases from 0 to 1, the MPL of the first worker should be plotted with a horizontal coordinate of 0.5, the value halfway between 0 and 1. Line segments will automatically connect the points. ? 100 90 80 70 60 50 40 30 20 OUTPUT (Shovels) MPL (Shovels per worker) 10 0 0 O 1 1 2…What is the effect if the cost of labor increases? O Price increases, quantity increases O Price decreases, quantity decreases O Price decreases, quantity increases O Price increases, quantity decreasesdraw and fully label a supply and demand graph for new houses. suppose the cost of constructino worker wages goes up. Show how lines move and the change in price and quality for housing market