Question
In: Economics
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)
by
workers
Solutions
Rahul Sunny answered 2 years agoRelated 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.)
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....
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.
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
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