Note: Remember to plot each point between the two integers. For example, when the number of workers increases from 0 to 1, the marginal revenue product of labour for 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. WAGE (Dollars per worker) 300 270 240 210 180 150 120 90 60 30 0 0 1 3 LABOUR (Number of workers) 2 4 At the given wage and price level, Live Happley should hire Now Live Happley should hire 5 O Demand P = $15 Demand P = $13 ? Suppose that the price of strawberries decreases to $13 per kilogram, but the wage rate remains at $200. On the previous graph, use the purple points (diamond symbol) to plot Live Happley's labour demand curve when the output price is $13 per kilogram. ✓ when the output price is $13 per kilogram. Assuming that all strawberry-producing firms have similar production schedules, a decrease in the price of strawberries will cause the strawberry pickers to Suppose that wages decrease to $150 due to a decreased demand for workers in this market. Assuming that the price of strawberries remains at $13 per kilogram, Live Happley will now hire

Note: Remember to plot each point between the two integers. For example, when the number of workers increases from 0 to 1, the marginal revenue product of labour for 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. WAGE (Dollars per worker) 300 270 240 210 180 150 120 90 60 30 0 0 1 3 LABOUR (Number of workers) 2 4 At the given wage and price level, Live Happley should hire Now Live Happley should hire 5 O Demand P = $15 Demand P = $13 ? Suppose that the price of strawberries decreases to $13 per kilogram, but the wage rate remains at $200. On the previous graph, use the purple points (diamond symbol) to plot Live Happley's labour demand curve when the output price is $13 per kilogram. ✓ when the output price is $13 per kilogram. Assuming that all strawberry-producing firms have similar production schedules, a decrease in the price of strawberries will cause the strawberry pickers to Suppose that wages decrease to $150 due to a decreased demand for workers in this market. Assuming that the price of strawberries remains at $13 per kilogram, Live Happley will now hire

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter11: The Firm: Production And Costs

Section: Chapter Questions

Problem 15P

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Picture Tools 16285711986112063eel9ba0 69816244 (Read Only Sman References Mailings Review View Format Picture Shape Y Bring to Fre Picture Border Send to Bac Position Picture Effects Text Wrappr Picture Styles Arrange 2. 6 Question 2. 1. Widget factory Inc. in Wisconsin has the following production function: F(L,K) = 2L/2 K/2 L represent the number of labour hours. Workers at this factory are paid an hourly wage of $30 and they rent capital at $25/hour. Since this is a competitive market, the factory output the factory gets per is output is $50 per unit. Let's pretend the firm operates in the short run with capital fixed at 900, how many factory workers would Widget Factory Inc employ? What is their profit rate? Question 3.