Check this production table of a firm. Compute marginal products and fill in the table. Graph...

Check this production table of a firm. Compute marginal products and fill in the table. Graph the labor demand curve with real wage on the vertical axis and quantity demanded for labor on the horizontal axis. Labor supply is given at 5. What is the equilibrium real wage in the labor market? Find it by adding the labor supply curve to the diagram you drew in part 3. Then, state your answer.

Labor	Output	Marginal Price
0	0
1	15
2	28
3	39
4	48
5	56
6	63
7	68

Solutions

Expert Solution

With the given information, we can make the following schedule.

Labor, L	Output, Q	Marginal Product, MPL=Change in Q/Change in L	w=MPL
0	0
1	15	15	15
2	28	13	13
3	39	11	11
4	48	9	9
5	56	8	8
6	63	7	7
7	68	5	5

Equilibrium wage will be equal to the real wage rate where labor demanded is equal to labor supplied. Refer to given schedule, we observe that labor demanded is 5 at wage rate of 8.

Equilibrium wage rate in market is 8.

Rahul Sunny answered 1 year ago

Next > < Previous

Related Solutions

Fill in the following table, graph marginal and total utility of pizza and the total and marginal utility of beer and answer the following questions:

MICROECONOMICSFill in the following table, graph marginal and total utility of pizza and the total and marginal utility of beer and answer the following questions:QuantityOf beersTotal UtilityOf beerMarginal Utility of beerNumber of slices of pizzasTotal utility of pizzaMarginal utility of pizza00--------00---------13612022423831835449341459951269460If you have a budget of $10 and the pizza and beers cost $2 each, what is the consumer optimum?What if the price of beer increases to $3, but the price of pizza remains the same and your budget goes...

Assume a monopolist firm with diminishing marginal product. Graph the marginal cost curve. Graph the firm...

Assume a monopolist firm with diminishing marginal product. Graph the marginal cost curve. Graph the firm level demand curve. Graph the firm level marginal revenue curve. Identify the profit maximizing quantity to produce and the corresponding price. What does the price function look like if the monopolist can engage in perfect price discrimination?

Fill in the following table on the total and marginal utilities of a product A. Also...

Fill in the following table on the total and marginal utilities of a product A. Also answer the questions. Units of product A Total utility Marginal utility 0 0 1 20 _____ 2 35 _____ 3 _____ 10 4 _____ 5 5 _____ 0 6 45 _____ 7 35 _____ 8 _____ −15 (a) Graph both the total utility and marginal utility curves together on the same graph. (Take a picture of It and insert the picture in the right...

Compute the segment margin in the budget and actual columns of the table and then fill...

Compute the segment margin in the budget and actual columns of the table and then fill in the variance column. Explain why the segment margin was not what it was expected to be and identify the two biggest factors that caused the difference. Budget Actual Var. Sales – A $255,000 $224,000 Sales – B $465,000 $436,000 Total Sales $720,000 $660,000 Variable Costs: Manufacturing $105,000 $126,000 Advertising & Marketing $75,000 $74,000 Administrative & General $28,000 $26,000 Total Variable Costs $208,000 $226,000...

A firm produces two products where marginal cost of production for each product is equal to...

A firm produces two products where marginal cost of production for each product is equal to $30. The table below shows the reservation prices of different types of consumers for each of your product. Consumer Type Product 1 Product 2 A 25 100 B 40 80 C 80 40 D 100 25 Consider three alternative pricing strategies (i) only selling the goods individually (ii) only bundling and (iii) providing both as a package and individually. For each strategy, determine the...

Consider a toy making firm’s long run production choices. The following table shows the marginal products...

Consider a toy making firm’s long run production choices. The following table shows the marginal products of capital (K) and labour (L) for various methods of producing 10,000 toys per day. Production Method MPK MPL A 100 4 B 90 18 C 80 30 D 70 40 E 60 48 F 50 55 G 40 60 Capital costs $5.25 per unit and labour costs $3.00 per unit. a) Suppose the firm is currently producing 10,000 toys per day by using...

The Jones Company has the following cost schedule. Fill theblanks in the table to compute...

The Jones Company has the following cost schedule. Fill the blanks in the table to compute (a) average total cost and (b) marginal cost schedules for the firm. (round to the second digit after the decimal)(a)(b)AverageOutputTotal CostTotal CostMarginal Cost 0$3000------ 50 3750 $75.00/unit $15.00/unit100 427542.7510.50150 467531.17 8.00200 500025.00 6.50250 5300??300 5700??350 6250??400 7050??450 8225??

1. Compute the marginal products of the first through the eighth units of labor and enter...

1. Compute the marginal products of the first through the eighth units of labor and enter them in the table. (It may be easiest to just copy and paste this whole page into your submission and complete it there.) Marginal Average Units of Total product product labor production of labor of labor 0 0 0 0 1 80 _____ _____ 2 200 _____ _____ 3 330 _____ _____ 4 400 _____ _____ ...

Graph MC, AVC, and ATC for a firm with the costs indicated by the table to...

Graph MC, AVC, and ATC for a firm with the costs indicated by the table to the right. Assuming Perfect Competition, what will happen in the short run if price is $12? What will happen in the long run? What will happen in the short run if price is $25? What will happen in the long run? What is the Long Run equilibrium price? indicated by the table to the right. Assuming Perfect Competition, what will happen in the short...

You may complete the following table. Units of labour Total production (units) Average production Marginal production...

You may complete the following table. Units of labour Total production (units) Average production Marginal production 0 0 ---------------- --------------------- 1 2 2 5 3 9 4 12 5 14 6 15 7 15 8 14 Increasing returns to scale occur when the range of units of variable factor is from A. 1 to 3 B. 4 to 6 C. 6 to 8 D. 3 to 5 2. Microeconomics

Subjects