Suppose a single firm has the marginal revenue product schedule for a particular type of labor...

Suppose a single firm has the marginal revenue product schedule for a particular type of labor given in the following table.

Number of units of labor	MRP of labor
1	$16
2	15
3	14
4	13
5	12
6	11
7	10
8	9

(a) Assume there are 200 firms with the same marginal-revenue-product schedules for this particular type of labor. Compute the total or market demand for this labor by completing column 1 in the table below.

(1) Quantity of labor demanded	(2) Wage rate	(3) Quantity of labor supplied
_____	$16	1100
_____	15	1000
_____	14	900
_____	13	800
_____	12	700
_____	11	600
_____	10	500
_____	9	400

Labor Quantity (200 firms):

(b) What will be the equilibrium wage rate and how many workers will be hired?

Wage Rate: $

Quantity:

workers

(c) What will be the marginal labor cost and wage rate for the individual firm?

Marginal Labor Cost: $

Wage Rate: $

(d) How many workers will the firm employ?

workers

(e) How would the imposition of a $15 minimum wage rate change the total amountof labor hired in this market?
(Increase/Decrease)

workers

Solutions

Expert Solution

Rahul Sunny answered 2 years ago

Next > < Previous

Related Solutions

Suppose a single firm has the marginal revenue product schedulefor a particular type of labor...

Suppose a single firm has the marginal revenue product schedule for a particular type of labor given in the following table.Number of units of laborMRP of labor1$1621531441351261171089(a) Assume there are 200 firms with the same marginal-revenue-product schedules for this particular type of labor. Compute the total or market demand for this labor by completing column 1 in the table below.(1)Quantity of labor demanded(2)Wage rate(3)Quantity oflabor supplied_____$161100_____151000_____14900_____13800_____12700_____11600_____10500_____9400Labor Quantity (200 firms):(b) What will be the equilibrium wage rate and how many workers...

The marginal revenue product of labor in firm X is MRPL = 35 - .23L, where...

The marginal revenue product of labor in firm X is MRPL = 35 - .23L, where L is the number of workers. If the current wage for workers in firm X's industry is $7.25 per hour, how many workers will be employed by the firm? (round to the nearest worker.)

Suppose you work for a firm and you notice that the marginal product of labor is...

Suppose you work for a firm and you notice that the marginal product of labor is decreasing as more labor is hired. Does this mean that the average product of labor must be decreasing too? Provide a reasoning for your response.

1.Table 27 Labor Output Marginal Product of Labor Marginal Revenue Product of Labor Wage 0 0...

1.Table 27 Labor Output Marginal Product of Labor Marginal Revenue Product of Labor Wage 0 0 --- --- --- 1 400 400 $800 $450 2 700 300 $600 $450 3 950 250 $500 $450 4 1050 100 $200 $450 Refer to Table 27. How many workers should the firm hire? A.1 B. 2 C. 3 D. 4 2. If education produces positive externalities and the government does not intervene in the market, we would expect Group of answer choices A....

A profit-maximizing firm should keep on hiring labor as long as the marginal revenue product of...

A profit-maximizing firm should keep on hiring labor as long as the marginal revenue product of labor is greater than the wage. True or False

Suppose a firm's marginal product of capital and marginal product of labor schedules are as shown...

Suppose a firm's marginal product of capital and marginal product of labor schedules are as shown in the table below. The firm hires both capital and labor competitively for $5 and $8, respectively. This assignment will be graded out of 6 points with 2 points possible for each question. Capital MP of Capital Labor MP of Labor 0 0 1 10 1 28 2 9 2 30 3 8 3 24 4 7 4 20 5 6 5 16 6...

Suppose a firm's marginal product of capital and marginal product of labor schedules are as shown...

Suppose a firm's marginal product of capital and marginal product of labor schedules are as shown in the table below. The firm hires both capital and labor competitively for $4 and $8, respectively. Its output is sold in a competitive market for $.50 per unit. Capital MP of Capital Labor MP of Labor 0 0 1 10 1 28 2 9 2 30 3 8 3 24 4 7 4 20 5 6 5 16 6 5 6 12 7...

1: Marginal revenue product equals a. marginal revenue multiplied by marginal product b. marginal product multiplied...

1: Marginal revenue product equals a. marginal revenue multiplied by marginal product b. marginal product multiplied by total revenue c. total revenue multiplied by total product d. marginal revenue multiplied by total product 2: The long-run is a period of time a. during which at least one input is variable b. during which at least one input is fixed c. sufficient to vary all inputs in the production process d. greater than one year 3: Marginal cost equals a. average...

Suppose that a firm finds that its low-productivity workers have a marginal revenue product of $21,000...

Suppose that a firm finds that its low-productivity workers have a marginal revenue product of $21,000 per year and that its high-productivity workers have a marginal revenue prod- uct of $35,000 per year. The cost of receiving a year’s worth of higher education is $4,000 for a low-productivity worker and $3,200 for a high-productivity worker. (This cost can be thought of as repayment on loans that have been incurred in the process of obtaining the education.) The firm plans to...

Number of Employees Total Production Marginal Product of Labor Marginal Revenue Product 0 0 0 1...

Number of Employees Total Production Marginal Product of Labor Marginal Revenue Product 0 0 0 1 18 18 2 30 12 3 41 11 4 46 5 If the price of the item is $10.00 per unit and the employees cost $100 each, how many employees should the firm hire to maximize their profit? Two employees Three employees Four employees One employee

Subjects