Assume that the marginal product of labor is given by thefollowing expression:where L is measured in millions.52.1MPL =L0.3Determine the equilibrium real wage if the labor supply equals 100 millionworkers .

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Answered: Assume that the marginal product of…

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter10: Labor Markets And Income Distribution

Section: Chapter Questions

Problem 3SQP

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The marginal product of labor for a firm is given by: MPL = 176 - 4H, where H is the number of hours they hire workers to work. For example, the marginal product of the first hour of labor would be 176 - 4*1, and the marginal product of the second hour of labor would be 176 - 4*2. If the market wage is $14 per hour, how many hours of labor will this firm hire? Round your final answer to two decimal places.
The implementation of a new labor-complementing technology will make the labor demand curve Select the correct answer below: shift to the right shift to the left O get steeper O get flatter ontent attribution :
Describe backward bending labor supply curve by discussing the income andsubstitution effects?
3. 2.x26x. The factor prices are pi = $3 and p2 = $4 and the firm can hire as much of either The production function of a competitive firm is described by the equation 1/2 factor it wants at these prices. WVhat is the firm's marginal cost?
is the labor dmand curve of a perfectly competitive firm, upsloping o downsloping?
Click to see additional instructions Consider a firm that exists for one period. The value of labour's marginal product is given by: VMP =Px MP, where P is the price of output, and MPL = 20 - 0.1L. The wage rate is $20. Assume that there are hiring and training costs of $40 per worker. If the firm expects the price of output to be $25, what is the optimal level of employment? Important note: Your answer needs to be rounded to 2 decimal places (e.g. 1.23). Any intermediate results should be rounded to at least 4 decimal places. Failure to do so may result in your answer not being accepted as a correct one.
Suppose that a shoe manufacturer that employs 6 workers is able to increase the average product of labour from 5 pairs of shoes per hour to 6 pairs of shoes per hour by hiring a seventh worker. What will the seventh worker's hourly marginal product be?
Q2 Imagine there are 100 firms in a competitive product market who hire labour in a perfectly competitive labour market. Assume that the value of the marginal product of labour for a single firm is: VM Py = 10-4N Derive the market labour demand curve Nd. + Drag and drop an image or PDF file or click to browse... Q2 Suppose the labour supply curve is: NS = 10+ W Draw the labour market for this industry and calculate equilibrium. Q2 c Suppose the government institutes a payroll tax of $3 an hour on employers. How does the influence the labour market? Draw a diagram and calculate the new equilibrium. + Drag and drop an image or PDF file or click to browse... Q2 d Who actually pays the majority of this payroll tax? Why? + Drag and drop an image or PDF file or click to browse...
define marginal product of labor and value of the marginal product of labor.describe how a competitive,profit-maximizing firm decides how many workers to hire.
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 (Number of workers) (Shovels) 1 80 2 150 3 210 4 250 5 270 Use the blue points (circle symbol) to plot the production function for Gopher Excavators on the following graph. 300 270 240 Production Function 210 180 150 120 90 60 30 LABOR (Number of workers) OUTPUT (Shovels)

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Assume that the marginal product of labor is given by the following expression: where L is measured in millions. 52.1 MPL = 20.3 Determine the equilibrium real wage if the labor supply equals 100 million workers .