Consider Live Happley Fields, a small player in the strawberry business whose production has no individual effect on wages and prices
4. Profit maximization
Consider Live Happley Fields, a small player in the strawberry business whose production has no individual effect on wages and prices. Live Happley's production schedule for strawberries is given in the following table:
| Labor (Number of workers) | Output (Pounds of strawberries) |
|---|---|
| 0 | 0 |
| 1 | 9 |
| 2 | 17 |
| 3 | 24 |
| 4 | 30 |
| 5 | 35 |
Suppose that the market wage for strawberry pickers is $100 per worker per day, and the price of strawberries is $18 per pound.
On the following graph, use the blue points (circle symbol) to plot Live Happley's labor demand curve when the output price is $18 per pound.
Note: Remember to plot each point between the two integers. For example, when the number of workers increases from 0 to 1, the value of the marginal product of 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.
At the given wage and price level, Live Happley should hire _______ .
Suppose that the price of strawberries decreases to $14 per pound, but the wage rate remains at $100.
On the previous graph, use the purple points (diamond symbol) to plot Live Happley's labor demand curve when the output price is $14 per pound.
Now Live Happley should hire _______ when the output price is $14 per pound.
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 $90 due to a decreased demand for workers in this market. Assuming that the price of strawberries remains at $14 per pound, Live Happley will now hire _______ .
Homework Answers
|
Labor |
Output |
MPL |
P=18 MPL * 18 |
P=14 MPL * 14 |
|
0 |
0 |
|||
|
1 |
9 |
9 |
162 |
126 |
|
2 |
17 |
8 |
144 |
112 |
|
3 |
24 |
7 |
126 |
98 |
|
4 |
30 |
6 |
108 |
84 |
|
5 |
35 |
5 |
90 |
70 |
At the given wage and price level, Live Happley should hire 4 workers
Suppose that the price of strawberries decreases to $14 per pound, but the wage rate remains at $100.
On the previous graph, use the purple points (diamond symbol) to plot Live Happley's labor demand curve when the output price is $14 per pound
Now Live Happley should hire 2 workers when the output price is $14 per pound.
Assuming that all strawberry producing firms have similar production schedules, a decrease in the price of strawberries will cause the demand for strawberry pickers to decrease
Suppose that wages decrease to $90 due to a decreased demand for workers in this market. Assuming that the price of strawberries remains at $14 per pound, Live Happley will now hire 3 workers
Add Answer to:
Consider Live Happley Fields, a small player in the strawberry business whose production has no individual effect on wages and prices
Consider Live Happley Fields, a small player in the strawberry business whose production has no individual effect on wages and prices.
Consider Live Happley Fields, a small player in the strawberry business whose production has no individual effect on wages and prices. Live Happley's production schedule for strawberries is given in the following table: Suppose that the market wage for strawberry pickers is $200 per worker per day, and the price of strawberries is $13 per pound. On the following graph, use the blue points (circle symbol) to plot Live Happley's labor demand curve when the output price is $13 per pound. Note: Remember...
2. Profit maximization Consider Live Happley Fields, a small player in the strawberry business whose production...
2. Profit maximization Consider Live Happley Fields, a small player in the strawberry business whose production has no individual effect on wages and prices. Live Happley's production schedule for strawberries is given in the following table: Labour (Number of workers) Output (Kilograms of strawberries) 0 0 1 18 2 34 3 48 4 60 70 5 Suppose that the market wage for strawberry pickers is $170 per worker per day, and the price of strawberries is $12 per kilogram. On...
1. Live Happley should hire (one, two, three, four, or five) worker 2. Now Live Happley...
1. Live Happley should hire (one, two, three, four, or five)
worker
2. Now Live Happley should hire (one, two, three, four, or five)
workers
3. An increase in the price of strawberries will cause the
(Supply of/demand for) strawberry pickers to
(decrease/increase)
4. Live Happley will now hire (one, two, three, four, or five)
workers
4. Profit maximization Consider Live Happley Fields, a small player in the strawberry business whose production has no individual effect on wages and prices....
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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)
0
0
1
90
2
175
3
245
4
300
5
325
Use the blue points (circle symbol) to plot the production
function for Gopher Excavators on the following graph.
Production Function01234540036032028024020016012080400OUTPUT
(Shovels)LABOR (Number of workers)
Calculate the marginal...
Consider the information in the file named HW2 - Production Data for a Single Firm. Currently...
Consider the information in the file named HW2 - Production Data
for a Single Firm. Currently the nominal wage rate is W = $1,000
per worker and the price of the output is P = $10 per unit. We
already know that the number of workers the firm will want to hire
depends on the relationship between the nominal wage it pays each
worker and the price per unit of the output that worker produces.
This relationship is captured by...
4. Marginal resource cost A company operates in a perfectly competitive market, selling each unit of...
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A company operates in a perfectly competitive market, selling
each unit of output for a price of $20 and paying the market wage
of $330 per day for each worker it hires.
In the following table, complete the column for the value of the
marginal product of labor (VMPL) at each quantity of workers.
Labor
Output
Marginal Product of Labor
Value of the Marginal Product of Labor
(Number of workers)
(Units of output)
(Units of output)...
Q1 [30 points] Show in a diagram using isoquants that a production function can have diminishing...
Q1 [30 points] Show in a diagram using isoquants that a production function can have diminishing marginal return to a factor and constant returns to scale? With the help of a diagram explain the concepts of "isoquant", "diminishing marginal return to a factor", and "constant returns to scale". What are the similarities and differences between indifference curves and isoquants. Q2 [30 points Assume that a firm has a fixed-proportions production function, in which one unit of output is produced using...
2. Profit maximization Consider Live Happley Fields, a small player in the strawberry business whose production has no individual effect on wages and prices. Live Happley's production schedule for strawberries is given in the following table: Labour (Number of workers) Output (Kilograms of strawberries) 0 0 1 18 2 34 3 48 4 60 70 5 Suppose that the market wage for strawberry pickers is $170 per worker per day, and the price of strawberries is $12 per kilogram. On...
1. Live Happley should hire (one, two, three, four, or five)
worker
2. Now Live Happley should hire (one, two, three, four, or five)
workers
3. An increase in the price of strawberries will cause the
(Supply of/demand for) strawberry pickers to
(decrease/increase)
4. Live Happley will now hire (one, two, three, four, or five)
workers
4. Profit maximization Consider Live Happley Fields, a small player in the strawberry business whose production has no individual effect on wages and prices....
pls answer all. i will like and thumbs up
While economists measure unemployment at the macroeconomic level, microeconomic forces are often responsible for this macro aggregate. In other words, the tie between microeconomics and macroeconomics is inevitable when discussing the level of unemployment in an economy. Suppose the following graph represents the market for unskilled labor in a fictional economy. These workers typically represent the young, inexperienced, or uneducated part of the labor force and are therefore most effected by...
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 (Number of workers) 0 Output (Shovels) 0 90 2. 175 3 245 4 300 325 S Use the blue points (circle symbol) to plot the production function for Gopher Excavators on the following graph. . Use the blue points (circle symbol) to plot the production function for Gopher Excavators on the following graph. 400 350...
3. The firm's demand for a resource and marginal revenue
product
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)
0
0
1
90
2
175
3
245
4
300
5
325
Use the blue points (circle symbol) to plot the production
function for Gopher Excavators on the following graph.
Production Function01234540036032028024020016012080400OUTPUT
(Shovels)LABOR (Number of workers)
Calculate the marginal...
Consider the information in the file named HW2 - Production Data
for a Single Firm. Currently the nominal wage rate is W = $1,000
per worker and the price of the output is P = $10 per unit. We
already know that the number of workers the firm will want to hire
depends on the relationship between the nominal wage it pays each
worker and the price per unit of the output that worker produces.
This relationship is captured by...
4. Marginal resource cost
A company operates in a perfectly competitive market, selling
each unit of output for a price of $20 and paying the market wage
of $330 per day for each worker it hires.
In the following table, complete the column for the value of the
marginal product of labor (VMPL) at each quantity of workers.
Labor
Output
Marginal Product of Labor
Value of the Marginal Product of Labor
(Number of workers)
(Units of output)
(Units of output)...
Q1 [30 points] Show in a diagram using isoquants that a production function can have diminishing marginal return to a factor and constant returns to scale? With the help of a diagram explain the concepts of "isoquant", "diminishing marginal return to a factor", and "constant returns to scale". What are the similarities and differences between indifference curves and isoquants. Q2 [30 points Assume that a firm has a fixed-proportions production function, in which one unit of output is produced using...
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