User Account

All Pages

Compute the marginal product of labor

Assignment Help Business Management
Reference no: EM131277358

Consider the following (short-run) production function, Y, as a function of labor, H: . Compute the marginal product of labor. How much labor would be demanded in a perfectly competitive market where the consumption price of the final good were 2 and the market wage were 20? Use the concepts of (i) substitutes in production versus pure complements in production and of (ii) gross substitutes versus gross complements to assess the likely impact of the rapid decline in the price of computers and related office equipment on the labor demand for secretaries. An individual can consume leisure, , or goods,. He can consume a maximum leisure of 160 hours a week. His utility function is . He has an exogenous income of 400 euros. Assume that the price of goods is one and the hourly wage is 5 euros. Write down the individual's budget constraint. Represent it graphically, indicate what is its slope and its vertical intercept and explain their economic meaning. Derive the individual's optimal choice of consumption, leisure and labor supply. Represent the optimal choice on a graph. How would his optimal choice change if the wage was 5 euros per hour but the exogenous non-labor income increased from 400 to 800 euros? Decompose the total effect on leisure between the income effect and substitution effect. Suppose that the wage increased from 5 to 10 euros per hour (non-labor income remains at 400). Compute the new optimal choice and represent it graphically. Decompose the total effect on leisure between the income effect and substitution effect. Discuss the differences with respect to the previous part. Derive the labor supply curve for this individual. When does the income effect dominate the substitution effect?

Reference no: EM131277358

Questions Cloud

Discuss how the project management function : Discuss how the project management function is managed including the type of organization. Discuss some of the tools used - their merits (or lack there of). What are some of your suggestions for changing the current project management process for bet..
What barriers do people with disabilities face : Only about half of the disabled people who want to work are employed. What barriers do people with disabilities face in obtaining employment that are not concerns of other groups protected by the EEOC, such as minorities, women, or the aged?
What is the procedure for sending a student to the office : What is the procedure for sending a student to the office? What do I do if a student reports he is being bullied by another student? What do I do if a parent is upset with me and is verbally abusive on the phone?
Statement about grievance procedures : Which of the following is a false statement about grievance procedures? Which of the following is a false statement about feedback across national boundaries?
Compute the marginal product of labor : Consider the following (short-run) production function, Y, as a function of labor, H: . Compute the marginal product of labor. How much labor would be demanded in a perfectly competitive market where the consumption price of the final good were 2 ..
High-performance work systems emphasize : Under the Taft-Hartley Act, three of the following are unfair labor practices on the part of the union. Which is not an unfair labor practice on the part of the union, under the Taft-Hartley Act? High-performance work systems emphasize three of the f..
Calculate the sample size pertaining to the key variable : Calculate the sample size pertaining to the key variable under consideration. Where information is missing, provide reasonable assumptions.
Identify the variables involved in each relation : Consider an alloy of two metals whose thermal conductivities are k1 and k2. Will the thermal conductivity of the alloy be less than k1, greater than k2, or between k1 and k2?
What is the degrees of freedom of regression : 1. What is the of this regression? 2. What is the degrees of freedom of this regression? 3. What is the effect of a one-dollar increase in price (P) on demand (Q)? 4. What is the effect of a one-dollar increase in income (M) on demand (Q)?

Reviews

Write a Review

Business Management Questions & Answers

  What is total quality

What is total quality?

  Continual improvement business

Change is defined as improvement - alteration or change for the better. "Continual improvement is good business." Business managers and leaders constantly strive for success - success in performance and in the competitive market place. Businesses ..

  Illustrate what will be impact on individuals who abuse

If Gallo Winery decides to abandon the Thunderbird and Night Train brands, illustrate what will be the impact on those individuals who abuse the dessert wine products?

  Explain is the fall in market value on announcement

Explain Is the fall in market value on announcement of a stock issue an issue cost in the same sense as an underwriter's spread?

  The specifications from the manufacturer

1. The specifications from the manufacturer of a particular type of metal coating call from temperature of the drying oven to be 370 F. The company that is considering using this coat has run tests by taking a large number of temperature readings fro..

  What are the organization mission and vision

What are the organization's mission and vision? What are the organization's key values? What strategic planning model does your chosen organization currently use? Which theoretical framework, such as systems theory or change theory, does your chosen ..

  Whistle blowing entails revealing wrongdoing or improper

whistle blowing entails revealing wrongdoing or improper conduct within an organization to those in authority or to the

  Market commonality and resource similarity

Determine what additional steps Apple's competitors are likely to take and how Apple will most likely respond. Explain your rationale.

  Describe the key steps in the decision-making process

describe the key steps in the decision-making process. Describe one area that you feel is most significant in this process

  Introductory management questions and issues

There are four basic functions of management planning, organizing, managing, and controlling. Rank order these in order from most important to least important them provide supporting narrative to justify your decision.

  Classify the most urgent issue necessary to penetrate

Marketing is really strategic idea of "connectedness" with consumers. From the perspective of Boeing, classify also discuss explain how Boeing connects with its consumers select from either the marketing concept or the selling concept. Be detailed..

  Controlling function of management

Discuss why does the controlling function of management have a negative connotation and explain how do we make it a positive event?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd