1.) Using appropriate diagram (s) explain why the competitive wage is the same across a homogenous market. 2.) Using the formular below explain why a firm can only control its demand for labour/employment while trying to maximize profit in the short run. Profits = pq - wE- rK Where p is for price, q is for output, w is for wage rate, E is for number of workers, r is the cost of capital and K is for capital. 3.) State 2 reasons for wage differentials and give a short explanation of each (2 sentences maximum for each of them)

1.) Using appropriate diagram (s) explain why the competitive wage is the same across a homogenous market. 2.) Using the formular below explain why a firm can only control its demand for labour/employment while trying to maximize profit in the short run. Profits = pq - wE- rK Where p is for price, q is for output, w is for wage rate, E is for number of workers, r is the cost of capital and K is for capital. 3.) State 2 reasons for wage differentials and give a short explanation of each (2 sentences maximum for each of them)

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter19: Earnings And Discrimination

Section: Chapter Questions

Problem 8PA

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11:16 Fri 10O Dec * 9 80% ... managebac-prod-china.s3.cn-north-1.amazonaws.com.cn A 22 of 46 AP Microeconomics Page 21 of 46 AP CollegeBoard Test Booklet Unit 5 Problem Set - FRQ's Include correctly labeled diagrams, if useful or required, in explaining your answers. A correctly labeled diagram must have all axes and curves clearly labeled and must show directional changes. If the question prompts you to "Calculate," you must show how you arrived at your final answer. The table below shows the short-run production function for Josh's Consulting Firm. Number of Consultants Total Product per Hour 1 21 2 43 3 66 4 88 108 6. 126 7 141 8. 151 (a) After which consultant do diminishing marginal returns begin for Josh's Consulting Firm? Explain using numbers. (b) Assume Josh's Consulting Firm sells its consulting services in a perfectly competitive market at a unit price of $2. Calculate the marginal revenue product of the fifth consultant. Show your work. (c) Josh's Consulting Firm hires…
Macroeconomics is an aggregate of what happens at the Microeconomics level. Would it be possible for what happens at the macro level to differ from how economic agents would react to some stimulus at the micro level? Hint: Think about the behavior of crowds.
Suppose the U.S. economy began to grow more rapidly than other counties in the world. What would be the likely impact on U.S. financial markets as part of the global economy?
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9:16 O 939 78 B/s Answered: Directi.. O bartleby.com = bartleby Q&A A 8 Business / Econom... / Q&A Libr... / Directions: Pl... Directions: Plot the following hypot... VVIIVMIVV IV Commody Xin a gaphin pae. Quantity Demanded Price Quanty Suppied Directions: Plot the following hypothetical market demand and supply schedules for commodity X in a graphing paper. Quantity Demanded (Units) Quantity Supplied (Units) Price (Peso) P 30.00 150 900 300 350 25.00 800 700 20.00 600 15.00 600 800 10.00 5.00 400 1000 200 1. What is the equilibrium price? Equilibrium quantity? Get help on your homework or study prep questions, at no additional cost. Experts are waiting! Start chat Expert Answer
4. What must the relationship between marginal productivities and input prices if a firm is not choosing the optimal bundle of inputs but instead is hiring too much labor relative to the optimum?
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.