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The labor supply curve is given by the equation LS = 3W + 20 and the labor demand curve is given by the equation LD = 80 - 2W. If the wage is $20, there will be a __________ of __________ workers.
A)shortage; 40
B) surplus; 20
C) shortage; 80
D) surplus; 80
E) surplus; 40
Five fishermen live in a village and have no other employment or income-earning possibilities besides fishing. They each own a boat that is suitable for fishing but does not have any resale value. Fish are worth $5 per pound, and the marginal cost of operating the boat is $500 per month. They all fish a river next to the village. According to the following schedule, they have determined that, when there are more of them out on the river fishing, they each catch fewer fish per month.
If four boats operate, then each boat will make a profit of:
A) $775.00.
B)$500.00.
C)$675.00.
D)$68.75.
E) $275.00.
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