Determine how much labor will be hired

Assignment Help Econometrics
Reference no: EM13207570

Firm's Demand for a Resource Use the following data to answer the question below. Assume a perfectly competitive product market

Units of Labor Units of Output
0 0
1 7
2 13
3 18
4 22
5 25

a. 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, how much labor will be hired?

d. Using your answer to part ©, compare the firm's total revenue to the total amount paid for labor. Who get the difference?

e. What would happen to your answers to parts (b) and (c) if the price of output increased to $5 per unit, other things constant?

Reference no: EM13207570

Questions Cloud

How much peanut and jelly will david buy : David gets $3 per month as an allowance to spend any way he pleases. Since he likes only peanut butter and jelly sandwiches, he spends the entire amount on peanut butter (at $0:05 per ounce) and jelly (at $0:1 per ounce).
Are functions homogeneous in income and prices : Suppose David spends his income (I) on two goods, x and y, whose market prices are px and py, respectively. His preferences are represented by the utility function u(x; y) = lnx + 2lny (MUx = 1=x;MUy = 2=y). Repeat part (b) for the case in which px..
What price will chevrolet charge once ford has set its price : Game Theory Suppose there are only two car companies, Ford & Chevrolet. Ford believes that Chevrolet will match any price it sets, but Chevrolet too is interested in maximizing profit. Use the price and profit data.
Study strategies are textbook use-note taking : study strategies are: 1) textbook use; 2) note taking; 3) test taking; 4) test anxiety; 5) time management; 6) motivation; 7) improving concentration; and 8) procrastination.
Determine how much labor will be hired : a. 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, how much lab..
Calculate the total hours per week supplied to the market : Market supply of labor The following table shows the hours per week supplied to a particular market by three individuals at various wage rates. Calculate the total hours per week (QT) supplied to the market. Hourly Wage Hours per week
Western industrial powers and traditiona : Do you agree with Michael Parenti when he says, "Imperialism has been the most powerful force in world history over the last four or five centuries, carving up whole continents while oppressing indigenous peoples and obliterating entire civilizations..
Describe the impact the differences have on excess quantity : Craft Unions Both industrial and craft unions attempt to raise their members' wages, but each goes about it differently. Explain the difference in approaches and describe the impact these differences have on excess quantity of labor supplied.
Calendars to schedule debate : House leaders may use any of these calendars to schedule debate on a bill except:

Reviews

Write a Review

Econometrics Questions & Answers

  How much should domestic automakers increase the price

A researcher estimated that the price elasticity of demand for automobiles in the U.S. is -1.2, while the income elasticity off demand is 3.0. Next year, U.S. automakers intend to increase the average price of automobiles by 5 percent, and they ex..

  Find the consumer surplus at the new price

Suppose two firms 1 and 2 compete in quantities and face a demand curve p = 100 - q. Suppose firm 1 has a constant marginal cost of 10 while firm 2 has a constant marginal cost of 40. Suppose they produce quantities simultaneously. a. Find q..

  Regression analysis question

Regression analysis was used to estimate the given seasonal forecasting equation, D1 is a variable that is equal to one in 1st quarter and zero otherwise;

  Consider an exchange economy with two goods

Consider an exchange economy with two goods, 1 and 2, and two consumers, A and B. The consumers are initially endowed with a total of unit of each good, i.e. w1 = w1A + w1B = 1 and w2 = w1B + w2B = 1. Their preferences are represented by UA(x1, x2..

  Determine the mrs

I have two goods, Xb and Xw, for beer and wine, and I need to draw the indifference map and determine the MRS. U(Xb, Xw) = min { Xb; aXw}, a>0. What do I need to do here? What does this look like?

  Determine what is the company cost of capital

A company is 40% financed by risk-free debt. The interest rate is 10%, the expected market risk premium is 8%, and the beta of the company's common stock is .5. Risk Free Debt Interest Rate Market Risk Premium Beta Taxes40% 10% 8% 0.5 35%

  Explain what is the inverse demand function

Ajax, Inc. is a monopolist. The estimated demand function for its product is Qd = 120 - 0.8P + 12Y + 4A Where Qd denotes quantity demanded, P denotes price, Y denotes personal income (in thousands of dollars), and A denotes advertising expenditures

  What will happen because it is out of quilibrium

Calculate total revenue, marginal revenue, marginal cost, and average cost at each level of sales fo the store. If Swim N Style is a profit maximizer, what number of suits will it sell per hour? What will its price and profit be? How can you tell wha..

  Compute the geometric mean rate of return

The prices of five computer stocks increased by 37.2 percent, 1,140.0 percent, 2.7 percent, 842.0 percent and 0.95 percent, respectively since 1990.

  Would the tax be proportional-progressive or regressive

Suppose a special tax was introduced that used the value of one's automobile as the tax base. Each person would pay taxes equal to 10 percent of the value of his or her car. Would the tax be proportional, progressive, or regressive

  What will be the depreciation charges

if the cost basis for a macrs 5-year property is $100000 and the equipment is sold for $20000 after 5 years of beneficial use, what will be the depreciation charges the 1st and 5th years and the book value at the end of the 5th year

  Which investment has the highest expected value

Suppose that as an owner of a federally insured S&L in the 1980s the price of real estate falls, and most of your loans go into default. In fact, so many loans go into default that the net worth of the S&L is a negative($5 million). Federal regula..

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!

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