Suppose a firm purchases labor in a competitive labor market and sells its product in a...
Suppose a firm purchases labor in a competitive labor market and sells its product in a competitive product market. The firm's elasticity of demand for labor is -0.4. Suppose the wage increases by 5 percent. What will happen to the amount of labor hired by the firm? What will happen to the marginal productivity of the last worer hired by the firm?
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Suppose a firm purchases labor in a competitive labor market and
sells its product in a...
Factor Market Practice FRQ Cleanlt is a competitive labor market. perfectly competitive, profit-maximizing trash collection firm. Cleanlt hires workers in a perfectly Draw side-by-side graphs for...
Factor Market Practice FRQ Cleanlt is a competitive labor market. perfectly competitive, profit-maximizing trash collection firm. Cleanlt hires workers in a perfectly Draw side-by-side graphs for the labor market and for Cleanit and show each of the following. a. e market wage, labeled Wm, and the quantity of workers hired in the market, labeled Lm i. The marginal factor (resource) cost curve, labeled MFC ili. The marginal revenue product curve, labeled MRP iv. The wage paid by the firm, labeled...
Leadbelly Co. Sells pencils in a perfectly competitive product market and hires in a perfectly competitive...
Leadbelly Co. Sells pencils in a perfectly competitive product
market and hires in a perfectly competitive labor market. assume
that the market wage rate for workers is $150 per day.
A.
What rule should Leadbelly follow to hire the profit-maximizing
amount of labor?
B.
At the profit-maximizing level of output, the marginal product of
the last work or hired is 30 boxes of pencils per day. Calculate
the Price of a box of pencils.
C.
Draw a diagram of the...
Q9. A perfectly competitive firm operates in the short-run with labor as its only variable factor....
Q9. A perfectly competitive firm operates in the short-run with labor as its only variable factor. Its production function is: Q = -L3 + 10L2 + 88L where Q is output per week measured in tons and L is the number of workers employed. The weekly wage is $324 and the product sells for $3.24 per ton. (a) At what weekly output is marginal cost equal to average variable cost? (b) What is the minimum product price...
1. How does a profit-maximizing firm that is operating in a competitive labor market respond to...
1. How does a profit-maximizing firm that is operating in a competitive labor market respond to an increase in the wage rate? A. The firm will demand less capital due to the substitution effect. B. The firm will demand more labor due to the substitution effect. C. The firm will produce less output due to the scale effect. D. The firm will demand more capital due to the scale effect. E. The firm will demand more labor due to the...
(1)A firm in a perfectly competitive market sells all its product (Q) at a constant price...
(1)A firm in a perfectly competitive market sells all its product (Q) at a constant price (P) of $60. Suppose the total cost function (TC) for this firm is described by the following equation: 2 3 Q TC(Q) = 128 +690-140 (a)Form the profit function and determine the output that maximizes the firm's profit. Evaluate the second order condition to assure that profit is maximized at this level of output. (b)Derive the marginal revenue (MR) and the marginal cost(MC). Graph...
38. An increase in the supply of labor с.increases the value of ~ginal Product of er...
38. An increase in the supply of labor с.increases the value of ~ginal Product of er and enes D. decreases the value of the marginal product of labor and increases the wage the wage. 39. A decrease in the demand for fish A. decreases the value of the marginal product of fishemen reduces their wage, and reduces employment in the fishing industry employment in the fishing industry employment in the fishing industry employment in the fishing industry B. increases the...
Use the following data to answer the questions that follow. Assume a perfectly competitive product market...
Use the following data to answer the questions that follow. Assume a perfectly competitive product market and labor market.. Units of Labor Units of Output a. Create a table and show all your math. Calculate the marginal revenue product for each additional unit of labor if output sells for $3 per unit. b. Draw the demand curve for labor based on the above data and the $3 per unit product price. C. If the wage rate is $15 per hour,...
TU) UdlIT IS. In a perfectly competitive market: each firm produces a unique product and chooses a price that maximize...
TU) UdlIT IS. In a perfectly competitive market: each firm produces a unique product and chooses a price that maximize there are very few firms, and each controls a large segment of the market. entry into the industry is restricted in the long run. there are many relatively small firms, and each firm is a price-taker. c. t If a firm is a price-taker, it: sells its product at the price determined by the market. sells its product at the...
QUESTION 5 The marginal product for labor is given (MP) = 3 – 0.02*L; price of...
QUESTION 5 The marginal product for labor is given (MP) = 3 – 0.02*L; price of the product is $100 and wage = 200. Based on information above, the marginal product of labor at the optimal level of employment is $3 $2 $1.5 $1 2 points QUESTION 6 If the labor elasticity of output is 0.5 and the capital elasticity of output is 0.9, then the production function exhibits constant returns to scale. economies of scale. diseconomies of scale. diminishing...
A firm produces its product using only labor. Its production function is Q? = 20LminusUpper L...
A firm produces its product using only labor. Its production function is Q? = 20LminusUpper L squared?, where Q is the number of units of output produced and L is the number of labor hours used. The firm purchases labor in a competitive labor market at the going wage rate of w? = ?$11 per hour. The firm sells its output in a competitive market at the market price of P? = ?$2.
Factor Market Practice FRQ Cleanlt is a competitive labor market. perfectly competitive, profit-maximizing trash collection firm. Cleanlt hires workers in a perfectly Draw side-by-side graphs for the labor market and for Cleanit and show each of the following. a. e market wage, labeled Wm, and the quantity of workers hired in the market, labeled Lm i. The marginal factor (resource) cost curve, labeled MFC ili. The marginal revenue product curve, labeled MRP iv. The wage paid by the firm, labeled...
Leadbelly Co. Sells pencils in a perfectly competitive product
market and hires in a perfectly competitive labor market. assume
that the market wage rate for workers is $150 per day.
A.
What rule should Leadbelly follow to hire the profit-maximizing
amount of labor?
B.
At the profit-maximizing level of output, the marginal product of
the last work or hired is 30 boxes of pencils per day. Calculate
the Price of a box of pencils.
C.
Draw a diagram of the...
(1)A firm in a perfectly competitive market sells all its product (Q) at a constant price (P) of $60. Suppose the total cost function (TC) for this firm is described by the following equation: 2 3 Q TC(Q) = 128 +690-140 (a)Form the profit function and determine the output that maximizes the firm's profit. Evaluate the second order condition to assure that profit is maximized at this level of output. (b)Derive the marginal revenue (MR) and the marginal cost(MC). Graph...
38. An increase in the supply of labor с.increases the value of ~ginal Product of er and enes D. decreases the value of the marginal product of labor and increases the wage the wage. 39. A decrease in the demand for fish A. decreases the value of the marginal product of fishemen reduces their wage, and reduces employment in the fishing industry employment in the fishing industry employment in the fishing industry employment in the fishing industry B. increases the...
Use the following data to answer the questions that follow. Assume a perfectly competitive product market and labor market.. Units of Labor Units of Output a. Create a table and show all your math. Calculate the marginal revenue product for each additional unit of labor if output sells for $3 per unit. b. Draw the demand curve for labor based on the above data and the $3 per unit product price. C. If the wage rate is $15 per hour,...
TU) UdlIT IS. In a perfectly competitive market: each firm produces a unique product and chooses a price that maximize there are very few firms, and each controls a large segment of the market. entry into the industry is restricted in the long run. there are many relatively small firms, and each firm is a price-taker. c. t If a firm is a price-taker, it: sells its product at the price determined by the market. sells its product at the...
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