Tim works 51 hours per week, and his wage is $20 per hour. If his wage increases to $40 per hour, and his labor supply curve is downward-sloping, this means:
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Tim works 51 hours per week, and his wage is $20 per hour. If his wage increases to $40 per hour, and his labor supply curve is downward-sloping, this means:
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- Suppose that firm's short-run 4 a production function is q=10/T – 1. 5.1 Find the level(s) of maximise the firm's average product of L that labour (APL). 5.2 Calculate the value of the second- order derivative (SOD) at the value of L found in 5.1 that maximises APL 5.3 Calculate the marginal product of labour (MPL) at the level(s) of L that maximises APLSuppose a firm finds that the marginal product of capital is 60 and the marginal product of labor is 20. If the price of capital is $6 and the price of labor is $2.50, describe how the firm should adjust its mix of capital and labor? What will be the result?Brian uses wool (K) and labour (L) to produce t-shirts (q). The production function is: q = min{1/3L, 2K}. The inputs are perfect complement.If he uses 0.5 kg of wool and 3 hours of labour, he can produce 1 t-shirt. The pice of wage per hour is given by w=$10 and the price of each kg of wool is given by r=$4. What is the long run total cost function, C(q)? Sketch it on the diagram.
- You are running a small factory that uses labour (L) and capital (K) to produce output (Q). Your production function is Q space equals space 10 L to the power of bevelled 1 half end exponent K to the power of bevelled 1 half end exponent For every unit of labour you use you have to pay a wage of w = $ 20 and for every unit of capital you use you have to pay a rental rate of r = $5. You've signed a contract that you will produce Q = 700 units of output. If you minimize your costs, what amount of labour (L*) should you use?Brian uses wool (K) and labour (L) to produce t-shirts (q). The production function is: q = min{1/3L, 2K}.If he uses 0.5 kg of wool and 3 hours of labour, he can produce 1 t-shirt. 1. The pice of wage per hour is given by w=$10 and the price of each kg of wool is given by r=$4. What is the L(q) and K(q)?Assuming the firm is minimizing its cost and the price of labour is $10 per unit and the price of capital is $20 per unit. the marginal product of labour is 50, what must the marginal product of capital be?
- A widget manufacturer has an infinitely substitutable production function of the form q= 2K+L a. Graph the isoquant maps for q=20, q=40, and q=60. What is the RTS along these isoquants? b. If the wage rate (w) is $1 and the rental rate on capital (v) is $1, what cost-minimizing combination of K and L will the manufacturer employ for the three different production levels in part a? What is the manufacturer’s expansion path? c. How would your answer to part b change if (v) rose to $3 with (w) remaining at $1?The marginal rate of technical substitution isCalculate the Marginal Product (MP) at each input level. If the price of printer is $100 each, calculate the Value of the Marginal of labor (VMPL). If the wage rate (per week) is $1800 , how many workers will be employed? If the firm decides to hire 14 workers, what is the maximum wage the firm would be willing to pay?
- Weiwei gets a part-time job in high school that pays $5 per hour with flexible hours. Shechooses to work 6 hours per week, earning $30 per week. After a while, her job reduces herpay to $4 an hour. In response, she cuts back to working 5 hours per week, earning only$20 per week. Weiwei’s parents feel bad about the pay cut, and decide to give her a weeklyallowance, in cash, to make up for it. If they want to get her back to her old utility level,how much should they give her and why? (Select one answer from below) : (a) $10: that is her total amount of lost earnings(b) Between $10 and $6: that is the income effect minus the substitution effect(c) Between $10 and $6: leisure is a luxury good for high school students(d) $6: that is how much she would have lost if she kept working 6 hours(e) $5: the substitution effect offsets the change in labor hours(f) Between $6 and $0: she will substitute away from labor at the old bundle(g) Between $5 and $0: a pay cut is like a negative in-kind…Don Juan Perez runs a seafood restaurant on the central coast. His total income last year was $150,000. The rent was $48,000 per year. His labour costs were $42,000 and materials, food and other variable costs were $20,000. Don Juan Perez was going to work as a cookbook writer where he would have earned $40,000 per year, or as a chef de cuisine in another restaurant, where he would have earned $35,000. The economic utility of Don Juan Perez is: Note: the answer is 0 (zero). Please clarify with calculations why this is the correct alternative.The price of factor A is GHC20 per unit and the price of factor B is GHC300.00 per unit.The marginal product of factors A is 40units and the marginal product of factor B is 60units.Should the firm increase the employment of factor A and decrease the employment of B to minimize the total long run cost of producing existing output?Explain